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Novo Resources Corp T.NVO

Alternate Symbol(s):  NSRPF

Novo Resources Corp. is a gold explorer focused on discovering gold projects. The Company is engaged primarily in the business of evaluating, acquiring, exploring, and developing natural resource properties with a focus on gold. It has a land package covering approximately 5,500 square kilometers in the Pilbara region of Western Australia, along with the 22 square kilometer Belltopper project in the Bendigo Tectonic Zone of Victoria, Australia. Its key project area is the Egina Gold Camp, where De Grey Mining is farming-in to form a JV at the Becher Project and surrounding tenements through exploration. The Company is also advancing gold exploration at Nunyerry North. It focuses on undertaking early-stage exploration across its Pilbara tenement portfolio. It has also formed a lithium joint venture with SQM Australia Pty Ltd (SQM) in the Pilbara, which provides shareholder exposure to battery metals. Its Belltopper Gold Project comprises the adjacent Malmsbury and Queens projects.


TSX:NVO - Post by User

Bullboard Posts
Post by goldhunter11on Jan 19, 2020 10:14am
218 Views
Post# 30570712

Beaton's Creek Production

Beaton's Creek ProductionIt would make a lot of sense for NVO to use MOY mill to process the 0.5M oz RE at Beatons. Either by a JV or toll milling with MOY. Or, just have a "merger" with MOY to get the use of the mill. Pre-sorting of the ores at both Beaton's and other depsits at MOY would allow the mill to produce a lot more ounces.

MOY seems to be floundering (not much cash left, C$4M, and a sizable debt,C$ 31M)., so perhaps they could use  a new management team.

NVO could issue enough shares to offer a reasonable premium (say 15%, for a cap of about C90M which is just about $90/629M = 14% of NVO mkt cap). Sumitomo has set aside over C$60M (?) for its investment in NVO with $30M committed for Egina, and the balance is presumably for Beaton's. This amount should be enough to pay off MOY debt of $31M. NVO still has over $30M cash in its treasury, with a potential 14Mwts x $6 = C$84M from KL exercise of the wts.
Note: It cost MOY $100M (A dollats?) to build that mill not too long ago. So, an offer of $90M for the mill and all MOY properies (with an RE =1.2Moz, reserve = 0.375Mos, and production of ~80kozAu/yr) would be reasonable for MOY shareholders.

https://www.millenniumminerals.com.au/wp-content/uploads/2019/09/1971538.pdf

It would look like Beaton's AISC would be low (open pit) and Beaton's Creek would be a cash generator for NVO.

I would say: NVO go for it.
GH11
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Bullboard Posts