NOVO RESOURCES COR COM NPV
Shares of NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) rallied 26.74% after the gold exploration company said its chairman, Dr. Quinton Hennigh, will make a presentation at the Denver Gold Forum at the Broadmoor Hotel In Colorado. The announcement comes days after the approval of the company’s drilling operations at the Karratha Gold Project in Western Australia.
Novo Resources Rally
The stock’s impressive run continued in Monday’s trading session as it registered a new 52-week high on the back of a strong bullish momentum. Novo Resources is currently trading at the high end of its $4.33 – $5.42 trading range.
NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) is up by more than 60% for the year, as the company’s project under development continue to bolster investor confidence on its long-term prospects. A rise in gold prices also continues to support the stock’s upward momentum.
The company has received Plans of Work approvals for core drilling at the Purdy’s Reward prospect which is part of the great Karratha gold project.
“We are eager to commence exploration activities at Karratha. We anticipate diamond core drilling to provide us with a good handle on stratigraphy and target depths similarly, bulk samples collected from trenching will provide critical data on grade and gold distribution. Karratha is a very exciting gold discovery, and Novo is ready to meet the challenge of exploring it,” said Dr. Quinton Hennigh.
$56 Million Financing
Separately, NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) and its Australian subsidiaries have entered into a binding term sheet with Calidus Resources Limited. Under the terms of the agreement, Calidus is entitled to earn a 70% interest in and for certain Novo tenements surrounding Warrawoona project in Western Australia.
The agreement is still subject to certain conditions including completion of due diligence and execution of a formal earn-in and joint venture agreement. In addition, NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has confirmed a non-brokered equity private placement with Kirkland Lake Gold.
Through the placement, the company raised $56 million in gross proceeds from the issuance of 14 million units priced at $4 a unit. Units subscribed by Kirkland Lake Gold comprised of one common share and share purchase warrant.
NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) plans to use net proceeds from the offering to finance development and exploration of projects already underway as well as for general and working capital purposes.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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