Novo and Sumitomo Corporation Extend Memorandum of Understanding to Advance Novo’s Australian Projects
January 07 2019 - 8:00AM
Novo Resources Corp. (TSX-V: NVO; OTCQX: NSRPF)
(“Novo” or the “Company”) is pleased to announce that the Company
has extended and expanded its previously announced non-binding
memorandum of understanding (the “MOU”) with Sumitomo Corporation
of Tokyo, Japan (“Sumitomo”) (please refer to Novo’s news release
of July 6, 2017) with the objectives of evaluating, advancing, and
developing the Company’s Australian gold projects. The MOU reflects
the following intentions of the parties:
- Sumitomo will provide human
resource assistance to assist Novo with the above objectives.
- Sumitomo commits to make available
up to 5,000,000,000 Japanese Yen in order to accomplish the above
objectives, subject to mutual agreement on development plans for a
project(s) and mutual agreement on a transaction structure(s).
- Novo shall grant to Sumitomo the
right to fund a project through an option to purchase an interest
in a project based on a mutually agreed-upon valuation or through a
subscription for Novo’s common shares at prevailing market prices
subject to certain discounts (in accordance with the policies of
the TSX Venture Exchange). Sumitomo will retain the sole and
exclusive right to determine the final funding mechanism.
- If Sumitomo agrees to commit funds
to a project and Novo agrees to receive such funding, Novo shall
seek approval from its board of directors to provide Sumitomo with
a right of first refusal (the “ROFR”) over the project. If granted,
the ROFR shall require Novo to provide notice to Sumitomo if an
offer is provided to Novo by a third party regarding the project (a
“Transaction”). Novo shall deliver to Sumitomo a written offer
disclosing terms at the same price and otherwise on the same terms
and conditions as set out in the third party offer, and Sumitomo
will have a thirty (30) day period to elect to enter into the
Transaction with Novo.
- The term of this MOU will expire
December 31, 2023.
“We are delighted to continue working with
Sumitomo Corporation to advance Novo’s Australian projects,”
commented Dr. Quinton Hennigh, Chairman, President, and director of
Novo Resources Corp. “Sumitomo has a long history of working
constructively with mining companies to evaluate, finance and
develop mines. Novo is honoured to collaborate with Sumitomo, and
we look forward to working with their highly skilled mining team as
we explore opportunities to advance Novo’s Australian gold
projects.”
About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the
Pilbara region of Western Australia, and Novo has built up a
significant land package covering approximately 12,000 sq km with
varying ownership interests. For more information, please contact
Leo Karabelas at (416) 543-3120 or
e-mail leo@novoresources.com
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”Quinton HennighChairman and
President
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.
Forward-looking information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, statements
as to future transactions and the likelihood of receiving funding
from Sumitomo. These 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, customary
risks of the mineral resource industry as well as the Company’s
ability to successfully obtain funding from Sumitomo.
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