Mr. Quinton Hennigh reports
NOVO TO BROADEN EXPOSURE TO PILBARA GOLD-BEARING LAG GRAVELS VIA LETTER OF INTENT WITH DE GREY MINING LTD.
Novo Resources Corp. has entered into a binding letter of intent with De Grey Mining Ltd., an Australian Stock Exchange-listed entity, in order to significantly broaden its exposure to the gold-bearing lag gravel deposits adjacent and believed to be synonymous with the company's Egina gold project.
Novo has secured the right to explore De Grey's tenements for gold-bearing lag gravel deposits for an initial three-year period by paying $1-million (Australian), of which $300,000 (Australian) will be held in escrow by Novo until De Grey acquires Indee Gold Pty. Ltd. (please see De Grey's news releases dated Jan. 30, Feb. 12 and Dec. 21, 2018). Prior to the expiry of the initial period, Novo can elect to extend its exploration rights for an additional two years by paying an additional $1-million (Australian), $300,000 (Australian) of which will also be kept in escrow by Novo until De Grey acquires Indee Gold. Novo can elect to continue to extend its exploration rights beyond the second period in two-year increments by paying an additional $1-million (Australian) per extension period, subject to the successful submission of a mining lease application or De Grey's waiver of this condition.
If a mining lease is granted to Novo on the De Grey tenements, Novo will be deemed to have acquired an 80-per-cent interest in the relevant tenements (or portions thereof) which comprise the mining lease area by giving notice to DEG and making a one-time payment of $2-million (Australian). If the joint venture is established during the initial period, Novo will also be required to pay the second payment.
De Grey remains the primary tenement holder and will have precedence at all stages of exploration and mining for bedrock mineralization while Novo holds rights for exploration and mining for gold-bearing lag gravel deposits. Certain tenements held by De Grey are excluded, including granted mining and miscellaneous leases, existing De Grey resources with a 300-metre buffer, any future mining leases granted over the existing De Grey resources, De Grey's conglomerate gold excursion areas, and minor areas of existing gravel rights on De Grey's tenure which are currently retained by third parties.
"The De Grey landholding is immediately adjacent to our Egina gold project," commented Dr. Quinton Hennigh, chairman and president of Novo. "Through this option arrangement, we have effectively added around 1,100 square km of additional exposure to gold-bearing lag gravels in the region, a significant focus of Novo's current exploration program. Over the coming months, we plan to evaluate the gold content and continuity of shallowly occurring gravels at Egina. Our program can now be expanded to test areas on this newly optioned ground. Although an unusual style of gold mineralization, we are very excited by the potential the terrace gravels have to offer."
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 sq km with varying ownership interests.
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