Goldtent TA Paradise

Novo Resources

1. Noman says:

   August 5, 2020 - 3:33 pm at 3:33 pm

   The company asked for a trading halt pending news.

   • Gold Learner says:

     August 5, 2020 - 3:35 pm at 3:35 pm

     Thanks Noman.
     Do you have NSRPF?
     What’s your take, is the news positive?

2. North says:

   August 5, 2020 - 3:35 pm at 3:35 pm

   Novo has been halted for an acquistion they have made that will help them with production. Go to CEO.ca and you will find a running conversation about the halt and what people think about it.

3. Steins1 says:

   August 5, 2020 - 3:35 pm at 3:35 pm

   YESTERDAY:

   VANCOUVER, British Columbia, Aug. 04, 2020 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has today signed an arm’s length agreement to acquire all of the outstanding shares of privately held Millennium Minerals Limited (“Millennium”) from IMC Resources Gold Holdings Pte Ltd, Heritas Capital Management (Australia) Pty Ltd, and IMC Resources Ltd (collectively, “IMC”) (the “Acquisition”). Millennium’s assets are located approximately 10 km south of Novo’s 100% controlled Beatons Creek conglomerate gold project (the “Beatons Creek Project”) in the Nullagine region, Shire of East Pilbara, Western Australia (see Figure 1 below) and include the requisite processing infrastructure to accelerate Novo’s planned transition to a producing gold company1.

   All amounts are in United States dollars unless otherwise indicated.

   Highlights:

   Near-term Gold Production: Fast-tracks Novo’s transition to becoming Australia’s next junior gold producer via production at its Beatons Creek Project. This will enable Novo to progress its broader organic exploration on its numerous other gold projects across the Company’s approximately 13,750 km2 Pilbara tenure (see Figure 2 below).
   Infrastructure in Place to Leverage Beatons Creek Project: The Acquisition provides Novo with key processing infrastructure, including a 1.5 Mtpa processing plant, tailings storage facility, contract power station, administration offices, assay laboratory, and a 230 room camp (the “Millennium Assets”) (see Figure 3 below).
   Significantly Reduced Timeline to Production: The Acquisition will substantially reduce the timeline that would otherwise be required to bring the Beatons Creek Project into production.
   Solidifies Novo’s Tier 1 Jurisdiction Exposure: Western Australia is the top-ranked globally recognized mining jurisdiction, according to the Fraser Institute2. Novo’s key focus is in the Pilbara Region of Western Australia, hosting extensive natural resources, operations and infrastructure.
   Limited Dilution, Strong Balance Sheet: The Acquisition will result in modest equity dilution of approximately 15%, an exceptional outcome for an exploration company planning on transitioning to producer status.

   ____________________

   1 A decision by Novo to place the Beatons Creek Project into production following the completion of the Acquisition might be made without being based on a technical report, preliminary economic assessment, pre-feasibility study or feasibility study of mineral reserves demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. It is further cautioned that the mineral resource is preliminary in nature and includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

   2 Source – https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2019.pdf

   “This transformative acquisition places Novo on the fast track to production,” commented Quinton Hennigh, Chairman, President, and director of Novo. “Novo entered the Pilbara region ten years ago on a largely conceptual basis and this transaction enables us to significantly accelerate our transition into a producing gold company. The Millennium Assets provide us with ideally suited infrastructure that should enable us to begin producing gold from our Beatons Creek Project several years earlier than our initial plan.”

   Hennigh continued, “Reaching the point at which we are today, the precipice of bringing conglomerate gold deposits into production, is the result of many years of hard work and creative innovation. Our path has included many milestones such as synthesizing a new geologic model for Pilbara conglomerate gold deposits, developing rigorous protocols for quantifying nuggety gold mineralization, conducting extensive bulk sampling, undertaking large scale trial excavation and processing, modeling resources around these unique deposits, negotiating multiple native title agreements, and seeking and receiving mining approvals, just to name a few. I am very grateful to the team at Novo for their dedication to achieving this important objective.”

   “Consolidation of the Nullagine gold field brings our aspiration of production into clear focus,” commented Rob Humphryson, CEO and director of Novo. “Importantly, the Millennium Assets also provide Novo with a technical hub to expedite assessment of field-generated mechanically sorted gold concentrates from the Company’s gold projects across the Pilbara.”

   Humphryson continued, “Novo has assembled an experienced operational team to advance the Company’s projects to production. I am delighted that the opportunity is now in hand to fast-track our planned transition to producer status given the current rising gold price environment.”

   Combining Millennium Infrastructure and the Beatons Creek Project

   The Millennium Assets are integral to Novo’s path to production, commencing with Novo’s 100%-owned Beatons Creek Project, which contains indicated mineral resources comprising 6.6 million tonnes at 2.1 g/t for 457,000 oz contained gold, with additional inferred mineral resources of 4.3 million tonnes at 3.2 g/t for 446,000 oz contained gold (refer to the resource summary table attached as Figure 4 to this news release and a technical report prepared pursuant to National Instrument 43-101 entitled “NI 43-101 Technical Report, Mineral Resource Update, Beatons Creek Conglomerate Gold Project, Pilbara Region, Western Australia” with an effective date of February 28, 2019 and an issue date of May 13, 2019 (the “Beatons Creek Technical Report”). The Beatons Creek Technical Report was prepared by Dr. Simon C. Dominy (FAusIMM (CPGeo)) of Surrey, UK and Dr. Quinton T. Hennigh (P.Geo.) of Longmont, USA. Dr. Dominy and Dr. Hennigh are qualified persons as defined under NI 43-101. The 2019 Technical Report is available under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website at http://www.sedar.com (filing date: May 13, 2019) and on the Company’s website at http://www.novoresources.com).

   Between commissioning in 2012 and being placed onto care and maintenance in 2019, the Millennium Assets supported historical production of 536,000 ounces of gold. Given an average throughput of 1.88 Mtpa over the past five years, the Nullagine gravity-CIL plant has the throughput capacity to treat mineralization from the Beatons Creek Project. Over the past several years, Novo has undertaken multiple metallurgical studies that indicated strong gravity and CN gold recoveries from both oxide and fresh Beatons Creek Project mineralization, thus making these compatible with the Nullagine milling circuit. Higher gravity recoverable gold will be achievable with minor modifications to the current gravity circuit.

   Millennium’s administration buildings and 230 room camp facilities provide capacity for Novo to operate at Nullagine. Nullagine is a two hours’ drive north of the major iron ore mining centre of Newman with a full-service airport with multiple flights from and to Perth every day.

   Additionally, Millennium’s assets include approximately 291 km2 of highly prospective mineral tenure covering much of the Middle Creek line and parts of the Blue Spec line, two structural corridors within the Mosquito Creek basin, host to numerous orogenic lode gold deposits. Millennium mined the oxide cap to many of these deposits between 2012 and 2019. Significant fresh mineralization remains, but Novo has not included this material in its future plans at this time.

   The Company intends to tender processing facility refurbishment works and major mining contracts in Q3 2020, recruit a capable workforce and commence critical systems developments and upgrades, grade control drilling on the Beatons Creek Project, and processing facility commissioning in Q4 2020, and commence mining in Q1 2021. Processing facility refurbishment works are scheduled to continue between Q3 2020 and Q1 2021. The Concurrent Financing (as defined below) will provide the Company with sufficient capital to ensure completion of this work.

4. Noman says:

   August 5, 2020 - 3:36 pm at 3:36 pm

   30 hours?

5. Noman says:

   August 5, 2020 - 3:37 pm at 3:37 pm

   My kids college money is in there.

6. Karl says:

   August 5, 2020 - 3:39 pm at 3:39 pm

   You presumably have seen the news release present on multiple sites — not just the company’s.

   Even though it states no approval is needed for the basic deal by the Australian authorities I wonder whether Canadian (and maybe Canadian provincial authorities?) need to approve. Also, there may be some negotiating going on involving Kirkland Lake and Sumitomo, which have their interests in NVO as well as Sprott. NEM has had an interest in NVO previously as well. There may be ruffled feathers to smooth or possibly a deal on top of a deal being discussed.

   In other words, I don’t know. It is a complicated looking deal, more than just an acquisition and a large loan so they may be having to finesse it carefully–2 or more governments, multiple boardrooms possibly.

   • Karl says:

     August 5, 2020 - 4:12 pm at 4:12 pm

     Could be something such as Sumitomo or NEM (investors in QH’s IRV.cse/IRVRF) are irritated that they didn’t get advised ahead of time and given an opportunity to invest and are using some leverage, e.g., with the Japanese gov’t, to complain. Or that KL, which has some ownership of NVO, wanted greater leverage and is complaining, or that one or all or someone else is offering to buy NVO and keep Sprott out or minimize Sprott’s role. KL has more cash than it needs and might have been wanting buying all of NVO, maybe with Sumitomo, maybe also with NEM too. Maybe some other company is offering to buy the little company with the mill for a higher price than NVO is offering. Any number of things could be going on behind the scenes. NVO was a complicated company as it was w/o bringing in Sprott. I have to wonder whether QH was trying to keep his independence by complicating things via Sprott and Sumitomo and KL are irritated +/- NEM also. Just conjecture.

     I don’t know these things at all. Being clueless and just guessing, I do know it was a complicated company and situation
     even if the production issue now gets settled and even if everyone involved loved the idea.

7. Noman says:

   August 5, 2020 - 3:44 pm at 3:44 pm

   Anything to get them to sell some rock! If there is so much gold dig a hole and sell a dore bar!

8. Atomic says:

   August 5, 2020 - 3:45 pm at 3:45 pm

   Shorts are toast…

   https://finance.yahoo.com/news/novo-undertakes-transformative-acquisition-fast-190500606.html

9. Noman says:

   August 5, 2020 - 3:49 pm at 3:49 pm

   We are a metal detecting house hold here. My expert, 16 years old with 8 years of experience wants to go there and help them get moving. Quinton, if you don’t get off your ass and sell something we will.

10. Noman says:

    August 5, 2020 - 3:55 pm at 3:55 pm

    GL. Each kid has 3500 shares

11. kemmrich says:

    August 5, 2020 - 5:18 pm at 5:18 pm

    Generally shares of the “buying” company seem to take a hit on news of the acquisition. Doesn’t mean that is the case this time or that the hit would last long if it is a good purchase!
    I guess the only thing to be on the watch for is if the “buying” company needs to raise short term capital to assist in the integration of the purchased company.

    Since it is an “arm’s length agreement”, there must be some connection between the buyer and seller in one fashion or another.

12. Chartsmaster says:

    August 5, 2020 - 5:32 pm at 5:32 pm

    Seems like some dilution? https://www.marketwatch.com/press-release/novo-announces-upsize-of-previously-announced-private-placement-to-c425-million-and-concurrent-non-brokered-private-placement-of-c3-million-2020-08-05?siteid=bigcharts&dist=bigcharts&tesla=y