Artemis sells off $20m Novo stake

Artemis Resources has announced plans to sell its stake in Canadian joint venture partner Novo Resources for $20.7 million, with the proceeds set to be spent on exploration at the company’s conglomerate gold assets in the Pilbara.

The West Perth-based explorer said it had agreed to sell its 4 million Novo shares to Canadian mining company Kirkland Lake Gold at $CA5 per share, with the current share price sitting at $CA5.30.

The deal will increase Kirkland’s stake in Novo to 18.8 per cent.

Artemis was issued the Novo shares in August last year as part of the JV, which allows Novo to farm-in to 50 per cent of conglomerate gold in Artemis’s tenements, including Purdy’s Reward.

Novo has released the 12-month escrow condition to allow the share sale to occur.

Executive chairman David Lenigas said the sale would strengthen the company’s balance sheet.

“This $20 million deal will significantly boost Artemis’s cash reserves without diluting shareholders,” he said

“Our 50 per cent interest in the exciting Novo-Artemis joint venture in the Karratha area remains unchanged and we are well funded to continue paying our share of JV expenses.

“Artemis believes that the decision by Kirkland Lake Gold to increase its position in Novo is further evidence of the strength in the conglomerate and paleo placer gold story.”

The deal is expected to be closed by the end of the month.

Shares in Artemis were up 2.6 per cent at 20 cents each at 1230pm AEDT.