Novo reflects on getting bounced from GDXJ: It'll be OK
2022-12-20 10:30 ET - Shareholders Letter
Mr. Michael Spreadborough reports
NOVO RESOURCES SHAREHOLDER UPDATE
Novo Resources Corp. has issued a letter to shareholders.
Dear shareholders,
We understand that VanEck Junior Gold Miners ETF (GDXJ) rebalanced its index holdings and liquidated its full position in Novo Resources on Friday, Dec. 16, 2022. GDXJ held approximately 9.6 million shares, or 3.8 per cent of Novo's total issued and outstanding shares. Consolidated trading volume in Novo shares on Friday across the Toronto Stock Exchange and the OTCQX Best Market totalled approximately 16.3 million shares, or 6.5 per cent of Novo's total issued and outstanding shares.
We acknowledge that the past 18 months have been a challenging period for both the company and broader gold sector, and are obviously disappointed with GDJX liquidating its entire position. However, the company has made great strides in the shift and execution of its exploration-driven growth strategy, and management believes that the future for Novo is promising.
As outlined in the company's recent address to shareholders, we are focused on executing an extensive exploration strategy in 2023 to deliver the next major phase of growth for the company.
The company's exploration team has identified an exciting pipeline of targets across our premium and dominant landholding in the Pilbara region of Western Australia, which we will continue to rapidly explore and drill over the next 12 months, along with our promising joint ventures in the Bendigo region of Victoria. Our exploration program will seek to leverage Novo's proximity to other major discoveries, such as: De Grey Mining's Hemi gold deposit; Azure Minerals' Andover nickel-copper-cobalt deposit; and Artemis Resources' Carlow Castle gold (Cu-Co) deposit.
We also recently welcomed Liatam Mining Pty. Ltd., Australian-based manager of the Bald Hill lithium and tantalum mine in Western Australia, as our newest shareholder and project investor in the Quartz Hill project, which is located in close proximity to the Nullagine gold project. The closing of Liatam's $5-million investment at 39 cents per unit will occur once TSX approval is obtained shortly.
Novo has excellent long-term growth opportunities, driven by a dedicated focus to continuing exploration across our premium project portfolio in Pilbara and Victoria, which comprises highly prospective precious metal and battery metal targets. We are excited to be advancing the next phase of our story and have confidence that we are on the right path to success.
On behalf of the board and Novo team, we welcome all shareholders who joined the register or increased their positions on Friday and look forward to updating you on Novo's exciting progress throughout 2023.
Yours faithfully,
Michael Spreadborough (executive co-chairman) and Dr. Quinton Hennigh (non-executive co-chairman)
Qualified person statement
Dr. Quinton Hennigh, PGeo, is the qualified person, as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, responsible for, and having reviewed and approved, the technical information contained in this letter. Dr. Hennigh is the non-executive co-chairman and a director of Novo.