Liatam Mining Makes Investment in Novo and Quartz Hill Joint Venture Formed - Seite 2

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¹ 15 December 2022; Novo Announces Strategic Investment & Advancement of Battery Minerals Strategy. See also paragraph 9.6 of Novo’s ASX IPO prospectus dated 2 August 2023.

Quartz Hill Joint Venture (JV)

The 80%/20% JV between Liatam and Novo has been formed following completion of the earn-in requirement. Liatam will now sole fund and free carry all of Novo’s required exploration costs in relation to the joint venture structure, until earlier of:

• Liatam having completed a Feasibility Study in respect of at least one deposit of Relevant Minerals; and
• Liatam having sole funded the exploration; capped of A$20m.

Following an initial 12-month period of exploration, Liatam made an offer of A$200k to acquire legal title to the tenements that are the subject of the JV package, which was accepted by Novo. The transaction transfers the title of the tenements to Liatam and they will be the manager of the JV. Novo has retained its 20% share of battery mineral rights as well as all gold and silver rights on these tenements.

The Quartz Hill area is comprised of six granted Exploration Licenses, nineteen Prospecting Licences and one Exploration Licence Application collectively covering approximately 770 sq km. The area is considered prospective for lithium–caesium–tantalum (LCT) style pegmatite mineralisation².

Novo Investment

In addition to the formation of the JV, Liatam has signed a subscription agreement and agreed to subscribe for an additional A$1.8 million in Novo shares.

Subject to receipt of TSX approval, 9,000,000 shares will be issued to Liatam, based on a share value of A$0.20 per share, increasing their shareholding from ~3% to ~6%. Liatam has a right to transmute the issued shares into ASX CDIs following a four-month hold.

Following the A$10 million transaction with SQM Australia³ and the investment committed by Liatam, Novo is well positioned to continue to efficiently execute its gold exploration strategy throughout 2024.

The funds received will be utilised to advance Novo’s Pilbara exploration drilling and reconnaissance programs in the southern Egina Gold Camp, the Balla Balla Gold project and at Belltopper Project in Victoria.

ABOUT NOVO

Novo explores and develops its prospective land package covering approximately 7,500 square kilometres in the Pilbara region of Western Australia, along with the 22 square kilometre Belltopper project in the Bendigo Tectonic Zone of Victoria, Australia. In addition to the Company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders.