Novo: Announces Closing of Brokered and Non-Brokered Financings Totaling C$56 Million
VANCOUVER, British Columbia, Aug. 27, 2020 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO) is pleased to announce that it has closed its previously announced and increased brokered and concurrent non-brokered private placements of subscription receipts (“Subscription Receipts”) of the Company to raise gross proceeds of approximately C$56 million (collectively, the “Offering”). The Offering was undertaken in conjunction with Novo’s planned acquisition of Millennium Minerals Limited (the “Acquisition”) (please refer to the Company’s news releases dated August 4, 2020, August 5, 2020, and August 11, 2020 for further details).
Gross proceeds of approximately C$51 million were raised from the brokered private placement (the “Brokered Offering”) and gross proceeds of approximately C$5 million were raised from the non-brokered private placement (the “Non-Brokered Offering”). The Brokered Offering was conducted through a syndicate of agents co-led by Clarus Securities Inc. and Stifel GMP (the “Co-Lead Agents“), together with PI Financial Corp., CIBC Capital Markets and Haywood Securities Inc. (the “Agents”). In total, the Company issued 17,192,379 Subscription Receipts at a price of C$3.25 per Subscription Receipt for total gross proceeds of approximately C$56 million (approximately US$42.6 million), which included the exercise of the option granted to the Agents.
The net proceeds from the Offering will be used to fund the Acquisition, for capital expenditures relating to the restart of Millennium Minerals Limited’s infrastructure, and for general corporate working capital purposes related thereto.
“We are very pleased with the level of interest in these financings,” commented Quinton Hennigh, Chairman and President of Novo Resources. “The Offering provides necessary capital to move Beatons Creek closer to production over the next few months. Novo is delighted to be on a solid path forward.”
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