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NSRPF - Sale of Nullagine Gold Project to Calidus Resources | Benzinga
Novo Resources Corp
HIGHLIGHTS
Novo has executed agreements with Calidus Resources Limited (ASX: CAI) to divest its Nullagine Gold Project in the East Pilbara region of Western Australia on 20 December 2023, with completion occurring on 21 December 2023.
Calidus has assumed all obligations, royalties, claims and liabilities relating to the Nullagine Gold Project, including the rehabilitation liability.
Novo has received completion consideration of A$250,000 (in CAI shares) and has a right to receive a further A$5 million in deferred consideration subject to the achievement of a production milestone relating to the Nullagine Gold Project assets.
Novo has revised the terms of its deferred consideration deed with IMC Holdings (originally entered into upon the acquisition of Millennium Minerals Ltd in 2020) to restructure the obligation to pay the balance of the amounts owing under that arrangement over a possible 3 year period.
Novo's Nullagine Gold Project was a non-core asset and its disposal was foreshadowed in the Company's ASX IPO prospectus. The sale of the Nullagine Gold Project is another key step in the Company's pursuit of identifying and delivering prospective standalone gold projects with +1 Moz development potential.
Novo Executive Co-Chairman Mike Spreadborough said,
"As we continue to execute our exploration growth strategy to define gold deposits with significant development potential, to complete this disposal of Novo's Nullagine Gold Project, which was a non-core asset, is a good outcome for the Company and our shareholders.
"Through this agreement, our financial position is improved with the removal of the existing rehabilitation ...