Novo Exercises Option Over GBM Resources’ Malmsbury Gold Project

VANCOUVER, British Columbia, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has exercised its option to earn a 50% interest (the “Interest”) in the Malmsbury gold project (the “Malmsbury Project”) held by ASX-listed GBM Resources Limited (ASX: GBZ) (“GBM”). Transfer of the Interest to Novo is subject to approval from the Victorian Department of Jobs, Precincts and Regions and the Australian Foreign Investment Review Board (the “Conditions”). Please see the Company’s news releases dated March 30, 2020 and April 6, 2020 for further details.

“We are pleased to exercise our option over the Malmsbury project,” commented Quinton Hennigh, Chairman and President of Novo. “Although early stage, Malmsbury hosts one of the closest geologic analogues to the high-grade Fosterville gold deposit situated approximately 50 km to the north. Like Fosterville, Malmsbury is situated along the eastern margin of the prolific Bendigo zone. Mineralization is of classic epizonal orogenic style displaying high-level vuggy quartz veins, elevated antimony and finely disseminated high-grade gold. Novo believes that it now holds one of the most prospective high-grade gold projects in the Victorian gold fields.”

Upon satisfaction of the Conditions, Novo will issue 1,575,387 common shares (the “Option Shares”) to GBM as consideration for the exercise of the option. The Option Shares will be subject to a statutory hold period expiring four months from the date of issuance of the Option Shares. The Company will also reimburse GBM for validly incurred and documented exploration expenditures on the Malmsbury Project of up to AUD $250,000 incurred from March 30, 2020 to today, with such reimbursed amount being credited against the Earn-In Amount (defined below).

Upon satisfaction of the Conditions, Novo will have the right to earn an additional 10% interest in the Malmsbury Project and form a joint venture with GBM by incurring AUD $5 million in exploration expenditure (the “Earn-In Amount”) over a four-year period (the “Earn-In Period”), as to a minimum of AUD $1 million during the first year, and AUD $1.25 million in each subsequent year, of the Earn-In Period. Any expenditure incurred during any year of the Earn-In Period which surpasses the minimum required amount will be credited against the subsequent year’s commitment. If Novo does not satisfy the Earn-In Amount during the Earn-In Period, Novo’s interest in the Malmsbury Project will decrease to 49%.