Mr. Quinton Hennigh reports
NOVO AND SUMITOMO CORPORATION EXTEND MEMORANDUM OF UNDERSTANDING TO ADVANCE NOVO'S AUSTRALIAN PROJECTS
Novo Resources Corp. has extended and expanded its previously announced non-binding memorandum of understanding with Sumitomo Corp. of Tokyo, Japan (please refer to Novo's news release of July 6, 2017), with the objectives of evaluating, advancing and developing the company's Australian gold projects. The MOU reflects the following intentions of the parties:
Sumitomo will provide human resource assistance to assist Novo with the above objectives.
- Sumitomo commits to make available up to five billion Japanese yen in order to accomplish the above objectives, subject to mutual agreement on development plans for a project(s) and mutual agreement on a transaction structure(s).
- Novo shall grant to Sumitomo the right to finance a project through an option to purchase an interest in a project based on a mutually agreed upon valuation or through a subscription for Novo's common shares at prevailing market prices subject to certain discounts (in accordance with the policies of the TSX Venture Exchange). Sumitomo will retain the sole and exclusive right to determine the final financing mechanism.
- If Sumitomo agrees to commit funds to a project and Novo agrees to receive such financing, Novo shall seek approval from its board of directors to provide Sumitomo with a right of first refusal over the project. If granted, the ROFR shall require Novo to provide notice to Sumitomo if an offer is provided to Novo by a third party regarding the project. Novo shall deliver to Sumitomo a written offer disclosing terms at the same price and otherwise on the same terms and conditions as set out in the third party offer, and Sumitomo will have a 30-day period to elect to enter into the transaction with Novo.
- The term of this MOU will expire Dec. 31, 2023.
"We are delighted to continue working with Sumitomo Corp. to advance Novo's Australian projects," commented Dr. Quinton Hennigh, chairman, president and director of Novo Resources. "Sumitomo has a long history of working constructively with mining companies to evaluate, finance and develop mines. Novo is honoured to collaborate with Sumitomo, and we look forward to working with their highly skilled mining team as we explore opportunities to advance Novo's Australian gold projects."
About Novo Resources Corp.
Novo's focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 square kilometres with varying ownership interests.
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