- Novo Resources Corp (CVE:NVO) has acquired 15,000,000 shares in Canadian private exploration company, New Found Gold Corp
- The shares were traded in exchange for 6,944,444 common shares of Novo Resources in a non-cash deal
- As a result, Novo will own a 15.97 per cent interests in New Found Gold and New Found Gold will own 3.73 per cent interest in Novo Resources
- New Found Gold currently owns the largest mineral claim package in the Province of Newfoundland and Labrador
- Last year at the Queensway Project, New Found intersected 92.86 grams per tonne of gold over 19 metres
- Novo Resources Corp (NVO) was up 7.87 per cent, with shares trading for C$2.33
Novo Resources (CVE:NVO) has purchased a significant package of shares in Canadian private exploration company, New Found Gold Corp.
Novo subscribed for 15,000,000 common shares in New Found Gold. In exchange, New Found will receive 6,944,444 common shares of Novo Resources.
Upon closing the deal, Novo will own a 15.97 per cent interests in New Found Gold.
Conversely, New Found will own approximately 3.73 per cent interest in Novo Resources.
New Found Gold own the largest mineral claim portfolio in the province of Newfoundland and Labrador.
In a 2019 drill program at New Found’s Queensway project, the company intersected 92.86 grams per tonne of gold over 19 metres. Within this sample was a higher-grade of 285.2 grams per tonne over six metres.
This high-grade interception was near-surface, only 96 metres deep, and clearly caught the attention of Novo Resources.
In a related development, Newfoundland and Labrador recently announced their “Mining the Future” initiative. The province hopes to entice five new operating mines to the area to boost employment.
Newfoundland and Labrador expect the new mines to generate $4 billion in annual mineral shipment and $100 million in exploration costs by 2030.
Dr. Quinton Hennigh, President and Chairman of Novo Resources, believes this is a sound investment for the company.
“We at Novo think the Queensway Project represents a very promising new high-grade gold discovery.
“We are very pleased to have the opportunity to be part of this exciting discovery and, upon completion of the acquisition, look forward to supporting New Found as they advance,” he said.
Novo Resources Corp (NVO) was up 7.87 per cent, with shares trading for $2.33 at 3.25pm EST.