Novo chasing Pilbara gold targets after cash boost

Novo Resources has bolstered its bank balance with the sale of its remaining 20 per cent interest in the Quartz Hill joint-venture (JV) project, along with the company’s gold and silver rights, for $850,000.

The company is now laser-focused on developing its prospective gold and base metal projects in Western Australia’s Pilbara region, which include its agreement with De Grey Mining. Dr Grey is farming-in at Novo’s Becher project to form a joint venture with an exploration spend of $25 million within four years for a 50 per cent interest.

Novo Resources executive co-chairman and acting CEO Mike Spreadborough said: “This transaction aligns with Novo’s strategy to focus on our gold exploration in the Pilbara which includes the Egina JV. It is an exciting time to be in gold exploration with gold at record prices. Notwithstanding this transaction, our shareholders still retain significant exposure to the battery metals space through our Harding Battery Metals Joint Venture with SQM Australia Pty Ltd in the West Pilbara.”

Novo’s wholly-owned subsidiary Nullagine Gold entered into an agreement with Liatam Mining on December 15, 2022, granting Liatam the right to earn an 80 per cent interest in battery mineral rights at Novo’s Quartz Hill project.

Quartz Hill sits east of the historic goldrush town of Nullagine, about 1364 kilometres north-northeast of Perth.

To complete the joint venture earn-in, Liatam Mining was required to spend $1.5 million within two years and was also granted a one-time right to add lithium rights over Novo’s Pilbara tenements.

In 2023, Liatam opted to secure the lithium rights across Novo’s Pilbara tenements, with the move resulting in an additional 203 square kilometres being added to the package, increasing the earn-in amount to $1.75 million.

Liatam exceeded the required spend and formed the 80/20 Quartz Hill joint venture on December 20 last year, paying Novo $200,000 in the process and transferring its joint venture interest to its subsidiary, Austroid Australia.

Austroid’s purchase of the remaining 20 per cent and all the gold-silver rights to Quartz Hill has concluded the joint venture  agreement.

Novo retains exposure to a potential battery minerals inventory through its Harding Battery metals joint venture with Chilean lithium giant SQM Australia, a wholly owned subsidiary of Sociedad Química y Minera de Chile S.A.

SQM paid Novo $10 million for a 75 per cent interest in five tenements prospective for lithium and nickel, with an option to acquire further tenements within Novo’s Pilbara landholdings.

Novo retains 25 per cent interest in the joint venture for battery metals plus 100 per cent ownership of the gold, silver, PGEs, copper, lead and zinc mineral rights.

With the potential upside from its interest in the battery minerals play and its exposure to gold assets in a time of roaring prices, Novo appears well placed to benefit from its two-pronged approach, especially with the expected resurgence in the raw materials needed to fuel the electric-vehicle industry during the coming years. 

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