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Novo Resources lists on ASX, raises A$7.5 million in oversubscribed IPO

EditorAmbhini Aishwarya
Published 2023-09-11, 02:58 a/m

Novo Resources Corp. (ASX: NVO, TSX: NVO, & NVO.WT.A) (OTCQX: NSRPF) announced on Monday that it has successfully listed on the Australian Securities Exchange (ASX). The listing followed the completion of an oversubscribed Initial Public Offering (IPO), which raised A$7.5 million before costs through the issue of 37,500,000 shares at A$0.20 per CHESS Depositary Interest (CDI). The IPO was led by Argonaut PCF.

The listing opens up a more accessible Australian capital base to Novo, granting it greater access to liquidity and increased exposure to Australian institutional investors. Notably, Novo welcomed key investors First Sentier Investors Ltd, Lazarus Securities Partners Ltd, and Harmanis Holdings Pty Ltd to its shareholder base.

Novo's portfolio includes a highly prospective 10,500 sq km Pilbara, Western Australia, exploration portfolio with a strong focus on the Nunyerry and Balla Balla Projects located in the East Pilbara. The company also owns the Belltopper Gold Project in Victoria.

With no debt and cash and marketable securities of A$51.75 million ($1 = AUD1.5534), Novo is focused on executing its growth strategy aiming to identify and define deposits with +1 Moz development potential. The company also announced several exploration programs set to commence in the second half of 2023, including at Nunyerry North in September, Balla Balla in Q4 2023, and at the Belltopper Gold Project in October.

Mike Spreadborough, Novo Executive Co-Chairman and Acting CEO said this was an exciting milestone for Novo and the company looks forward to continuing to deliver value to its new and existing shareholders through the ASX listing. "We are focused on accelerating our exploration activities and seeking value accretive opportunities to grow long-term shareholder value," Spreadborough said.

In June, De Grey Mining Limited agreed to invest up to A$25 million on exploration at the Company’s Becher project and adjacent tenements within 4 years, forming the Egina JV. De Grey also became Novo’s largest shareholder through a A$10 million cornerstone investment, with a ~10.3% shareholding post ASX listing. De Grey is managing all exploration efforts at Becher and is set to commence drilling this month with a planned program of 39,000 m of aircore, RC, and diamond drilling.

Following the IPO capital raising, Novo now has 342 million shares on issue, implying a market capitalization of ~ A$68.4 million or approximately C$60 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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