Novo Closes Cornerstone Investment With De Grey Mining

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HIGHLIGHTS

• Closing of A$10 million (approximately C$8.97 million) cornerstone investment in Novo (the “Financing”) by De Grey Mining Limited (ASX: DEG) (“De Grey”) via the issuance of 35,223,670 common shares of Novo (“Shares”) at a price of approximately C$0.255 per Share, representing an undiluted 11.6% post-Financing position in Novo
• De Grey to advance Becher Gold Project and adjacent tenements through an earn-in and joint venture (“Egina JV”) and earn a 50% interest by incurring A$25 million on exploration within four years (with a minimum commitment of A$7 million over 18 months)¹

VANCOUVER, British Columbia, June 28, 2023 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to advise that the previously announced Financing with De Grey¹ has now closed following Toronto Stock Exchange acceptance of notice of the Financing and conditional approval of the listing of the Shares issued under the Financing. Gross proceeds of approximately C$8.97 million / A$10 million were raised through the issue of 35,223,670 Shares. The Financing was conducted at a price of approximately C$0.255, and De Grey now holds an undiluted 11.6% position in Novo.

Argonaut PCF Limited (“Argonaut”) of Perth, Western Australia received a cash finder’s fee of A$0.5 million (approximately C$0.45 million) in connection with the Financing.

The Shares issued in the Financing are subject to a statutory hold period expiring on October 29, 2023, along with an additional voluntary contractual hold period (the “Contractual Hold Period”) expiring on June 28, 2024. However, if the Company has not received a formal listing decision letter for its proposed dual listing on the Australian Securities Exchange (“ASX”)¹ by December 28 2023, the Contractual Hold Period will expire on December 28, 2023. The Shares will be subject to orderly sale restrictions subsequent to the expiry of the Contractual Hold Period.

Commencing on December 28, 2023 and subject to De Grey maintaining at least a 12.5% undiluted interest in Novo at all times (the “Nomination Threshold”), De Grey has a one-time right to nominate a director to Novo’s board. However, if Novo has not received a formal listing decision letter from the ASX regarding its proposed dual listing by December 28, 2023, the Nomination Threshold will decrease to 10%. De Grey also has the right to participate in any raising conducted in conjunction with the ASX listing such that it holds up to a maximum undiluted post-financing interest of 12.5% of Novo.