Completion of Tranche 1 of Placement and Valuation Update

Novo Resources Corp. has successfully completed Tranche 1 of its recent placement, raising approximately C$5.90 million (around A$6.20 million). This was achieved by issuing roughly 8.4 million units at C$0.10 in Canada, with each unit consisting of one common share and one-half share purchase warrant. Additionally, the company issued approximately 50.6 million Chess Depository Interests (CDIs) at A$0.105 each for investors outside Canada, where each CDI underlies one common share. The completion of this tranche is a significant step for Novo, enhancing its shareholder base and reaffirming the support from existing investors.

Looking ahead, Novo is planning to conduct a second tranche of the placement, which will require shareholder approval at the upcoming Annual General Meeting expected in May 2026.

In terms of financial performance, Novo has also issued a valuation update regarding its investments. The company plans to decrease the recorded value of its investment in Elementum 3D, a Colorado-based 3D printing materials and technology company, by C$12.84 million (A$13.18 million), reflecting current market conditions. Moreover, an impairment of C$10.36 million (A$10.67 million) will be recognized for certain tenements that were either relinquished or sold during 2025. These updates are consistent with Novo's established accounting practices and will be included in its financial report for the year ending December 31, 2025, which is expected to be finalized and released shortly.

This proactive approach to capital management and asset valuation underscores Novo's strategic positioning in the market. The company remains committed to transparency and effective communication with its investors.

On March 6, 2026, Novo Resources Corp. announced the successful completion of Tranche 1 of its placement, raising approximately C$5.90 million (A$6.20 million). The completion of this tranche, which involved issuing units at C$0.10 and CDIs at A$0.105, is a significant step for Novo as it enhances its liquidity and supports ongoing operations. With Tranche 2 pending shareholder approval at the upcoming Annual General Meeting in May 2026, investors should closely monitor this development as it may further bolster the company's capital position.

However, it is essential to also consider the recent valuation update, which indicates a reduction in the holding value of investments, specifically a C$12.84 million decrease for its stake in Elementum 3D and an impairment of C$10.36 million related to certain tenements. This reflects ongoing adjustments to asset valuations amid changing market conditions, likely impacting investor sentiment. While the impairment adjustments are consistent with accounting policies and historical practices, they may signal underlying challenges within the company's operational portfolio.

Given the recent capital raise and potential upcoming shareholder approval for additional funds, investors might view this as a strategic opportunity for further investment. However, caution is advised due to the recent valuation downturns. It would be prudent for investors to assess their positions in light of both the capital raise and the asset impairments. Monitoring the company's financial report for the year ended December 31, 2025, will provide clarity on its operational health and future guidance. Overall, while opportunities exist, a balanced approach considering both the capital influx and potential asset devaluations is advisable.