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Novo Resources Corp
Symbol NVO
Shares Issued 207,897,385
Close 2020-09-11 C$ 3.36
Recent Sedar Documents

Novo erases $50.3M (U.S.) of debt off balance sheet

2020-09-14 09:30 ET - News Release

Mr. Quinton Hennigh reports

NOVO SETTLES MILLENNIUM MINERALS LIMITED'S DEBT TO IMC

Novo Resources Corp.'s recently acquired, wholly owned subsidiary, Millennium Minerals Ltd., has settled all debts owed to IMC Resources Gold Holdings Pte. Ltd. and IMC Resources Investments Pte. Ltd. Please see the company's news releases dated Aug. 4, 2020, and Sept. 8, 2020, for further details.

All amounts are in United States dollars, unless indicated otherwise.

Millennium has repaid IMC's secured debt of approximately $50.3-million ($69-million (Australian)) through the payment of $43.7-million ($60-million (Australian)) in cash and the issuance by Novo of 2,656,591 units of Novo at a price of $3.25 (Canadian) per unit. Each unit comprises one common share of Novo and one-half of one transferable share purchase warrant, with each whole warrant entitling the holder to acquire one share at a price of $4.40 (Canadian) for a period of 36 months after the closing of the debt settlement. Novo has provided financing to Millennium to ensure Millennium has sufficient cash to allow repayment of the cash portion of the debt settlement.

Immediately subsequent to the issuance of the units comprising the debt consideration, IMC holds 9.67 per cent of the issued and outstanding common shares of Novo.

The units issued to IMC pursuant to the debt consideration are subject to statutory and TSX Venture Exchange hold periods expiring on Jan. 14, 2021; in addition, a further contractual hold period will apply to half of the units issued to IMC, increasing the hold period for those units to 12 months.

About Novo Resources Corp.

Novo Resources is advancing its flagship Beatons Creek gold project to production, while exploring and developing its highly prospective land package, covering approximately 14,000 square kilometres, in the Pilbara region of Western Australia. In addition to the company's primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders.

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