Novo Resources Corp (TSX:NVO, OTCQX:NSRPF) has received overwhelming support for its IPO offer of CDIs with the full over-subscriptions raising the maximum of A$7.5 million.
Owing to the offer being fully subscribed, the company has closed the offer period ahead of schedule and is now in discussions with the ASX to determine if it can bring forward the proposed ASX listing date.
Significant demand for the IPO offer came from sophisticated and institutional investors across Australia.
“A major achievement”
Novo executive co-chairman and acting CEO Mike Spreadborough said the company was pleased with the significant amount of interest and looked forward to continuing to deliver value to all shareholders and stakeholders by progressing its exploration and development plans.
“To close our offer ahead of schedule is a major achievement and one the team is very proud of. We have received a positive response and overwhelming demand for the IPO."
Seeking early admission
The offer opened on Thursday, August 10, 2023, and was originally scheduled to close on Friday, September 1, 2023, with an expected ASX admission date of Thursday, September 14, 2023.
Novo’s offer remains subject to ASX approving the company’s application for admission. This process is ongoing and cannot be guaranteed.
Listing “logical next step”
A listing on ASX is a logical next step in the company’s Australian growth plans, given historical local investor appetite for new mining discoveries with exploration upside.
An ASX listing would provide an opportunity to enhance Novo’s profile across a broader mix of investors, increase liquidity and attract additional equity research coverage.
Spreadborough recently said: “The move to dual list on the ASX is the logical next step in our growth plans, considering local investor appetite for mining and exploration companies with projects located in Australia.
“We believe the listing would provide significant benefits to Novo including increased liquidity, access to potential new sources of equity and attracting institutional investment and equity research coverage as we seek to deliver on our growth strategy.”
Argonaut PCF is acting as financial adviser and Argonaut Securities Pty Ltd is acting as broker to the IPO.
“Busy few months”
Novo recently entered into a major earn-in and joint venture agreement with leading Western Australian gold developer De Grey Mining Ltd, which has undertaken to spend (within four years) up to A$25 million on exploration of Novo’s flagship Becher Gold Project and adjacent tenements.
De Grey also made a cornerstone investment of A$10 million in Novo (pre-IPO) to become the company’s largest shareholder with a pre-IPO undiluted 11.6% interest (~10.30% post-IPO).
“It has been a busy few months with De Grey becoming our JV partner at Becher and a cornerstone investor, which is a substantial endorsement of what we have been working on at Novo,” Spreadborough said.
“We are ready to keep building on the momentum with a significant exploration program scheduled for the remainder of the year as we focus on identifying and defining deposits with significant development potential and thank all of Novo’s supporters in making the IPO process to date an outstanding success.”
Novo is exploring a prospective land package covering around 10,500 square kilometres in the Pilbara region of Western Australia, along with the 22-square-kilometre Belltopper project in the Bendigo Tectonic Zone of central Victoria, Australia.