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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

Comment by JRafflesUKon Feb 19, 2021 11:00am
120 Views
Post# 32609316

RE:RE:RE:RE:From @Excelsior

RE:RE:RE:RE:From @ExcelsiorResponses in red below:-
 
Yes, there is that potential.  However, two things are working for us, IMO.

1)  I think QH and maybe other insiders want to build their own powerhouse in this sector and could effectively thwart any takeover offer, it being up to shareholders anyway.
 
Since KL’s exit, Eric Sprott (9.95%) and the Mill vendors IMC (at 8.84%) are the largest two shareholders., with KL trailing at 4%. It seems that a consensus for a takeover would be needed as a starting point between these shareholders. The 800 pound gorilla in any decision would be the circa 50% of retail shareholders.  

In the light of the growth prospects, then it is unlikely that retail shareholders would accept a share exchange with a behemoth major, unless the premium was very high.

 
https://www.marketscreener.com/quote/stock/NOVO-RESOURCES-CORP-16000925/company/

2)  Given that Novo's stable of claims is largely composed of near-surface flat laying conglomerates, majors, by and large, may not be too interested (for now) in taking on something new to their experience.  The only companies coming close are working the Western Deeps in South Africa.  There may be contenders, IMO, but they may have to work collectively to present an acceptable offer.  That will take time, a time during which Novo will only grow stronger.
 
KL's strategy seems to be to paying a good price for producing assets such as Detour.  Last year, KL opted for the capital loss relief by selling the bulk of their Novo shares last year. 

If it could be shown that the near surface conglomerate mining could be worked across the Pilbara, KL does have the cash and FCF to accelerate the Pilbara conglomerate and gravel mining prospects.

When it is taken into consideration that KL's time expired $7 warrants seemed valuable when they were issued, then a 100% plus premium for a proven conglomerate mining prospect covering a large proportion of the Pilbara might even make Tony Makuch run his slide rule over the numbers?


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