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Sokoman Minerals Corp. V.SIC

Alternate Symbol(s):  SICNF

Sokoman Minerals Corp. is a discovery-oriented company with projects in Newfoundland & Labrador, Canada. The company's primary focus is its portfolio of gold projects along the Central Newfoundland Gold Belt, and the district scale Fleur de Lys project in northwestern Newfoundland. The company also recently entered into a Strategic Alliance with Benton Resources Inc. through three, large-scale joint-venture properties in Newfoundland

Sokoman Minerals Corp. > Sprott Closes 2nd Tranche on 15 million NFG shares

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August 08, 2022 - 12:08 PM
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Post# 34878951

Sprott Closes 2nd Tranche on 15 million NFG shares

Sprott completing the second tranche of 15 million NFG share shows Sprotts deep committment to not only NFG but also SIC and LAB in the gold play in Newfoundand.

Novo Completes Second and Final Tranche of Sale of New Found Gold Shares for C$57.0 Million

VANCOUVER, British Columbia, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to advise that it has closed the second and final tranche of its previously announced sale of 15 million shares (the “Transaction”) of New Found Gold Corp. (“New Found”)1. In the second tranche, Novo sold a total of 6.75 million escrowed New Found shares to a corporation controlled by Eric Sprott (“Sprott”) at C$8.45 per share for gross proceeds of approximately C$57.0 million (“Tranche 2”). Inclusive of the gross proceeds raised from the sale of 8.25 million New Found shares sold to Sprott at C$8.35 per share in the first tranche1, gross proceeds of approximately C$125.9 million have been raised from the Transaction.

Novo’s consolidated unaudited cash position is currently approximately C$126.4 million. After-tax proceeds from the Transaction will continue to be used to provide Novo with the flexibility to aggressively advance its exploration programs across the Pilbara and Victoria, Australia, while expediting a feasibility study on the Fresh component of the Company’s Beatons Creek project in Nullagine, Western Australia2 (“Beatons Creek”).

Sprott Resource Lending Corp., Novo’s senior secured lender, waived any event of default which was triggered by Novo’s recent operational pause at its Beatons Creek project in Western Australia3 in anticipation of full repayment of the US$40 million (currently approximately C$51.4 million) senior secured credit facility (the “Credit Facility”) in August 2022 subsequent to completion of the Transaction. Novo will use the net proceeds from Tranche 2, in part, to repay the Credit Facility in full and will provide an update once repayment has been made leaving Novo free of long-term debt.