In a strategic move to sharpen its focus on gold exploration, Novo Resources Corp. (OTCQX: NSRPF) has sold its remaining 20% interest in the Quartz Hill Joint Venture to Austroid Australia Pty Ltd, a related entity of Liatam Mining Pty Ltd. This transaction, valued at A$850,000 (approximately CAD $774,000) in cash, also includes Novo’s full rights to gold and silver within the joint venture.
The Quartz Hill Joint Venture was established following an agreement on December 15, 2022, where Liatam was granted the right to earn an 80% interest in battery mineral rights at Quartz Hill by investing A$1.5 million over two years. This arrangement allowed Novo to be free-carried until either a bankable feasibility study was completed or Liatam funded A$20 million in total expenditures.
Liatam met the earn-in requirements by exceeding the necessary spend by December 20, 2023, thus forming an unincorporated joint venture structure. As part of this agreement, Liatam was also permitted to acquire additional lithium rights over selected tenements owned by Novo.
Mike Spreadborough, Executive Co-Chairman and Acting CEO of Novo, expressed gratitude towards the Liatam group for their contributions to the joint venture and their ongoing support as a significant shareholder. He emphasized that this transaction is in line with Novo’s strategy to concentrate on gold exploration in the Pilbara region, particularly through initiatives like the Egina Joint Venture. With gold prices reaching record highs, this is a pivotal time for exploration in the sector. Despite this divestiture, Novo retains substantial exposure to the battery metals market via its Harding Battery Metals Joint Venture with SQM Australia Pty Ltd.
The recent sale marks a significant transition for Novo as it reallocates resources towards its core gold exploration projects. The company has been proactive in securing its financial position; following the formation of the joint venture, Liatam made an additional investment of CAD $1.6 million into Novo through a private placement, increasing their shareholding from approximately 3% to 6%.
Novo’s commitment to gold exploration remains strong, particularly within its Egina Gold Camp and other projects across Western Australia and Victoria. The company is currently advancing exploration at Nunyerry North and is engaged in early-stage exploration across its extensive tenement portfolio.
Despite divesting from Quartz Hill, Novo continues to maintain a robust presence in the battery metals sector through its Harding Battery Metals Joint Venture with SQM. This partnership involves five prospective lithium and nickel exploration tenements in the West Pilbara region. SQM has invested A$10 million (C$8.84 million) for a 75% interest in these priority tenements while allowing Novo to retain a 25% stake along with complete ownership of gold and silver rights. Novo’s strategic focus on both precious metals and battery minerals positions it well for future growth as demand for these resources continues to rise.
