VANCOUVER, British Columbia, June 12, 2020 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has entered into an option agreement (the “Option Agreement”) with Bellary Dome Pty Ltd (“Bellary Dome”) for the option (the “Option”) to acquire the gold rights in exploration licence 47/3555 (the “Tenement”) located in the Southern Pilbara region of Western Australia (please see figure 1 and figure 2 below). The Option is conditional upon the removal of a caveat currently registered against the Tenement by a non-arm’s length party to Bellary Dome and subsequent registration of the Tenement in Bellary Dome’s name by July 31, 2020 (the “Conditions”).
Subject to satisfaction of the Conditions, the Company will pay Bellary Dome A$25,000 for an initial option period of 12 months from the date of satisfaction of the Conditions (the “Option Period”). At any time during the Option Period, Novo may exercise its Option and earn a 100% gold rights interest in the Tenement by paying Bellary Dome A$1 million and granting Bellary Dome a 2% gross overriding royalty on all gold derived from future production by Novo from the Tenement. Before the expiry of the Option Period, Novo may extend the Option Period to 24 months from the date of satisfaction of the Conditions by paying Bellary Dome A$25,000, 36 months from the date of satisfaction of the Conditions by paying Bellary Dome A$50,000, or 48 months from the date of satisfaction of the Conditions by paying Bellary Dome A$100,000.
“Bellary Dome is a structural uplift along the southern margin of the Pilbara craton,” commented Quinton Hennigh, President, Chairman, and a director of Novo Resources. “Units of the Fortescue Group, including gold-bearing conglomerates, have been upwarped and exposed. This agreement gives Novo rights to one of the most prospective areas in the region, the site of significant gold nugget discoveries by previous landholders within the past few years. I reviewed samples of conglomerate material with in situ gold nuggets from exploration license 47/3555, and these appear very similar to material from our other Pilbara gold projects further north and east. Over the past few years, Novo has developed the in-house protocols to explore and advance projects like Bellary, and we are delighted to have yet another high-quality asset to add to our stable of conglomerate gold projects.”
About Novo Resources Corp.
Novo’s focus is primarily to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 13,000 square kilometres with varying ownership interests. In addition to the Company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail firstname.lastname@example.org
On Behalf of the Board of Directors,
Novo Resources Corp.
President and Chairman
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the expected satisfaction of the Conditions. Forward-looking statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, the removal of the caveat over the Tenement and subsequent registration of the Tenement in Bellary Dome’s name.