Novo partners with Sumitomo on WA gold project
TSX-V-listed Novo Resources Corporation has entered into a $30-million farm-in and joint venture agreement with Sumitomo Corporation of Tokyo to advance the Egina project, located in Western Australia.
Through the agreement, Sumitomo is entitled to earn up to a 40% interest in the project by spending up to $30-million, or C$40-million, over three years, with a required minimum of $5-millino for each phase defined by a programme and budget.
Should Sumitomo elect not to continue with the farm-in arrangement, any amounts advanced under the arrangement will be converted into common shares of Novo.
The Egina project is a high-potential gold project and comprises wholly-owned Novo tenure, including tenements acquired through the recent acquisition of Farno-McMahon; tenements into which Novo is currently earning an interest under a binding memorandum of agreement with ASX-listed Pioneer Resources; and a tenement into which ASX-listed De Grey Mining is currently earning an interest under a farm-in and joint venture agreement executed with Farno, prior to its acquisition by Novo.
Novo president and chairperson Dr Quinton Hennigh stated on Friday in a release that it was remarkable for an exploration company to team up with a world-class finance partner such as Sumitomo.
“With Sumitomo’s financial backing, we aim to quickly advance Egina through exploration and test-extraction phases with the ultimate goal, should results prove favourable, of setting the project on a path to production.
“Novo had been developing the relationship with Sumitomo for many years, built on a foundation of mutual trust and respect. The combined teams have the technical capacity to advance this unique gold deposit and we are honoured to work with Sumitomo’s capable technical team.”
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation