Quinton Hennigh reports
NOVO ANNOUNCES CLOSING OF NON-BROKERED EQUITY PRIVATE PLACEMENT
Novo Resources Corp. has closed its previously announced non-brokered equity private placement with Eric Sprott as lead investor. The financing raised gross proceeds of $2,356,730 by the issuance of 3,927,884 units at a price of 60 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of the company at a price of 85 cents per share for a period of 24 months from the closing date. The warrants are subject to an accelerated expiry, whereby, starting one year from the date of issue of the warrants, if the daily high trading price of Novo's common shares is $1.25 or higher for a period of at least 20 consecutive trading days, Novo may provide notice of early expiry and the warrants will expire 30 days thereafter.
All of the securities issued in the final tranche are subject to a hold period expiring July 8, 2016.
The company intends to use the net proceeds from the financing to further develop its mineral properties, advance its planned trial mining operation and for general working capital purposes.
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