Vancouver-based Novo Resources has decided to sell its stake of 15 million shares in New Found Gold to an entity con-trolled by Eric Sprott for a total of C$125.9 million (US$100 million), pursuant to arm’s length negotiations representing an aggregate pre-mium of 9.3 percent to the market.
Once it is finalised, the sale “will leave Novo debt-free and with a pro-forma cash balance of almost C$97 million, with funds providing Novo with the flexibility to aggressively advance exploration efforts across the Pilbara and Victoria, while expediting a Feasibility Study on the Fresh component of the Company’s Beatons Creek project in Nullag-ine, Western Australia,” Novo Resources said in a statement.
“Novo has always considered its sizable investment portfolio as a means to fund growth expenditure” said Mike Spreadborough, the executive co-chairman of Novo Resources.