Novo Resources Corp (TSX:NVO, OTCQX:NSRPF) has completed its dual listing on the ASX under the ticker NVO with 37.5 million CHESS Depositary Interests (CDIs) listed from an initial public offering (IPO) at A$0.20 per CDI that closed early, raising A$7.5 million.
The CDIs are issued in the ratio of 1 CDI for 1 Novo share and the IPO, which was led by Argonaut PCF, was strongly oversubscribed with support received from local institutional and sophisticated investors.
Complements TSX listing
Novo’s ASX listing complements its existing TSX listing and opens a more readily accessible Australian capital base to Novo, providing greater access to liquidity and increased exposure to Australian institutional investors.
The company welcomes key investors First Sentier Investors Ltd, Lazarus Securities Partners Ltd and Harmanis Holdings Pty Ltd to its loyal shareholder base, which includes major shareholders De Grey Mining Limited (ASX:DEG) with a 10.3% stake along with Heritage Capital Management (IMC Holdings), Liatam Mining Pty Ltd and Yandal Investments Pty Ltd.
“Exciting milestone”
Novo executive co-chairman and acting CEO Mike Spreadborough said this was an exciting milestone for Novo and the company looked forward to continuing to deliver value to its new and existing shareholders through the ASX listing.
“We are delighted to be listed on the ASX and I would like to welcome all new shareholders to Novo, the future is very exciting. I would also like to extend my thanks to all the many people involved in getting us to this stage and acknowledge all the hard work that went into getting us ASX-ready.
“The ASX listing is the logical next step for Novo and will facilitate our Australian growth plans, considering the local investor appetite for mining and exploration opportunities."
Strong balance sheet
Following the IPO capital raising, Novo has 342 million shares on issue, 37.5 million of which take the form of CDIs on the ASX, and with 304.5 million being shares on the TSX.
At the IPO offer price of A$0.20, this implies a market capitalisation of ~A$68.4 million (approximately C$60 million. Novo also has 6.5 million options and 30.5 million warrants on issue.
Novo has a strong balance sheet with no debt, cash and marketable securities of A$51.75 million and is focused on executing its growth strategy aiming to identify and define deposits with +1-million-ounce development potential.
Australian assets
The company has a highly prospective 10,500-square-kilometre Pilbara, Western Australia, exploration portfolio, with a strong focus on the Nunyerry and Balla Balla projects, both located in the East Pilbara. Another asset is the Belltopper Gold Project in Victoria.
Also in the Pilbara is the Egina joint venture project with De Grey Mining, which is planning about 39,000 metres of aircore, RC and diamond drilling to commence this month, with a primary focus on the Becher Project.
Exploration plans
Novo is planning exploration programs at Nunyerry North this month, Balla Balla next quarter and at the Belltopper Project in October 2023.
Belltopper is located about 50 kilometres south of Agnico Eagle’s Fosterville Gold Mine in the Bendigo Tectonic Zone, which has seen 60 million ounces of historical gold production.
"We are focused on accelerating our exploration activities and seeking value accretive opportunities to grow long-term shareholder value,” Spreadborough said.
“We have several exploration programs planned for the second half of 2023 and we look forward to getting boots on the ground and drill rigs spinning. We will be delivering regular updates as drilling progresses at Becher, Nunyerry North, Balla Balla and our Belltopper Project in Victoria.”
De Grey partnership
In June this year, De Grey Mining agreed to invest up to A$25 million on exploration at the company’s Becher project and adjacent tenements within four years, to earn a 50% interest and form 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).
The Egina JV partner is managing all exploration efforts at Becher and is set to commence drilling this month with a planned program of 39,000 metres of aircore, RC and diamond drilling.
"We also look forward to working with our Egina JV partner De Grey, as they take over all exploration efforts within the Egina JV, with a 39,000-metre program set to commence at Becher in September,” Spreadborough added.