Novo Resources (TSX: NVO) has acquired a 50% stake in the Queens gold project in Australia. Announced this morning, the stake was acquired via the exercising of a previously announced option with Kalamazoo Resources.
The exercising of the option will see the firm acquire a 50% stake in the property, which encircles the core of GBM Resources’ Malmsbury gold field in the Bendigo zone of Australia’s Victorian goldfields, 55 kilometres south of the Fosterville mine operated by Kirkland Lake, which is believed to have similar-type mineralization. The company also holds an option to purchase an interest in the GBM Resources property, giving the firm exposure to the entire Malmsbury gold field.
Novo is able to expand its interest in the Queens project by a further 20% and form a joint venture on the property with Kalamazoo by spending A$5.0 million in exploration expenses on the property over five years. The earn-in arrangement is structured such that $75,000 is required to be spent in the first year, $1.0 million in years two through four, and the remainder spent in the final year. A further 10% can be acquired by completing a PEA.
The company has issued 584,125 common shares to Kalamazoo in exchange for the 50% interest in the property.
Novo Resources last traded at $3.32 on the TSX.
Information for this briefing was found via Sedar and Novo Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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