Novo upsizes placement to A$8.2m to accelerate Pilbara and Victorian drilling Proactive uses images sourced from Shutterstock

Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO, FRA:1NOR) has secured firm commitments to raise about A$8.2 million, exceeding the A$6 million initially targeted earlier this week, as the gold explorer moves to accelerate drilling across its Western Australian and Victorian projects.

The company said it had received commitments for C$7.9 million (about A$8.2 million) through a placement of around 16.8 million units at C$0.10 per unit and about 61.1 million CHESS Depository Interests (CDIs) at A$0.105 per CDI to institutional, professional and sophisticated investors.

The placement will be completed in two tranches. Tranche 1, comprising roughly 8.8 million units and 50.2 million CDIs for aggregate proceeds of about C$6.0 million (A$6.2 million), is expected to settle on March 3, 2026. Tranche 2 will raise a further C$1.9 million (A$2.0 million) and is subject to shareholder approval at a general meeting expected in May.

Novo’s major shareholder, Northern Star Resources Limited, has committed to participate up to its pro-rata holding of approximately 9%. A director has also committed to participate, with their securities to be issued under Tranche 2.

As previously outlined, Canadian investors will receive shares bundled with half-attaching warrants, exercisable at C$0.15 for three years. Investors subscribing for CDIs will be offered one free-attaching option for every two CDIs issued, exercisable at A$0.15 and also expiring in three years, subject to the release of a prospectus and, for Tranche 2, shareholder approval.

The upsized raise follows Novo’s announcement earlier this week of a proposed C$5.8 million placement, reflecting strong investor demand. The company has now resumed trading on the ASX after a brief halt pending the outcome of the bookbuild.

Drilling focus across the Pilbara

Funds will primarily be directed towards planned drilling and reconnaissance programs across Novo’s priority greenfields projects in the Pilbara during 2026, subject to final approvals.

At Wyloo, a proposed 1,500-metre reverse circulation (RC) program will test a high-grade vein array once heritage approvals are secured. Rock chip assays from the area have returned up to 0.93 g/t gold, 482 g/t silver and notable antimony, copper, lead and zinc values.

At Balla Balla, Novo is planning a 6,000-metre air core campaign to follow up on a previously completed 5,996-metre program that delineated a large polymetallic geochemical anomaly.

Meanwhile, a 2,000-metre RC program is proposed at Teichman, targeting two shear zones each exceeding 1 kilometre in strike. Field mapping has returned high-grade rock chip results including 77.5 g/t gold and 51.4 g/t gold from the Pride prospects.

Story Continues

Novo is also planning a second-half 2026 drill program at its Belltopper gold project in Victoria, about 60 kilometres south of Agnico Eagle’s Fosterville mine in the prolific Bendigo Tectonic Zone, where more than 60 million ounces of gold have historically been produced.

In parallel, Northern Star continues exploration under its farm-in and joint venture arrangements at Egina, south of the Hemi gold project, where it can earn up to 50% through A$25 million in exploration expenditure.

Novo said it continues to receive strong annual dividends from its unlisted San Cristobal silver mine investment and believes maintaining that exposure, given current silver prices and performance, remains the best approach to maximising shareholder value.

All securities issued under the placement will be subject to a four-month hold period, with the transaction also subject to necessary TSX approvals.

View Comments