Novo Resources has signed a binding memorandum of agreement (MoA) to acquire a major interest in the Kangan gold project located in the Pilbara region of Western Australia from Pioneer Resources through a farm-in arrangement.
Novo Resources, along with one of its Australian subsidiaries, has agreed to pay A$200,000 ($143,401) in cash and issue 100,000 common shares to Pioneer for acquiring 70% interest in precious metal rights on four exploration tenements in the Egina region.
The company also agreed to subscribe to A$1m ($710,000) in Pioneer ordinary shares, priced at A$0.02 ($0.01) a share, in a private placement.
Furthermore, Novo Resources will provide $500,000 ($350,000) towards exploration expenditure within two years in exchange for a 70% earned interest, with an option to form a joint venture (JV) with Pioneer.
Novo has simultaneously agreed to acquire all the issued and outstanding shares of Farno-McMahon, an Australian exploration company, which holds 100% interest in four key tenements in the Egina region, including two mining leases.
The company has already paid A$150,000 ($107,551) to Farno as initial payment and will pay further A$2.35m ($1.68m) and issue common shares worth A$5.5m ($3.94m) to the shareholders of Farno.
Based in Canada, Novo is engaged in evaluating, acquiring and exploring gold properties, while Pioneer Natural Resources is an American petroleum, natural gas, and natural gas liquids exploration and production company
https://www.mining-technology.com/news/deals-this-week-novo-resources-thiess-mercuria-energy/
