Novo Resources Corp., a prominent exploration company listed on the ASX, TSX, and OTCQB, has announced a significant milestone in its capital raising efforts. The company has successfully secured firm commitments to raise gross proceeds of approximately A$8.2 million through a strategic placement aimed at institutional, professional, and sophisticated investors.
Placement Details and Structure
The capital raising involves the issuance of approximately 16.8 million units at C$0.10 per unit and around 61.1 million Chess Depository Interests (CDIs) at A$0.105 per CDI. This placement is structured to bolster the company's financial position while expanding its shareholder base. Novo Resources expressed enthusiasm about welcoming new investors and acknowledged the ongoing support from existing shareholders.
Two-Tranche Approach
The placement will be executed across two distinct tranches, each with specific conditions and timelines:
- Tranche 1: This initial phase comprises the issue of approximately 8.8 million units and 50.2 million CDIs, raising aggregate proceeds of about C$6.0 million (approximately A$6.2 million).
- Tranche 2: The second phase involves the issuance of roughly 8.0 million units and 10.9 million CDIs, aiming to raise aggregate proceeds of around C$1.9 million (approximately A$2.0 million). This tranche is subject to shareholder approval at a General Meeting scheduled for May 2026.
Key Investor Participation
Notably, Northern Star Ltd, a major shareholder of Novo Resources, has committed to participate in the placement up to its pro-rata holding of approximately 9%. Additionally, a director of the company has also pledged to participate. The CDIs allocated to Northern Star and the director will be issued as part of Tranche 2, underscoring the confidence of key stakeholders in the company's strategic direction.
Warrants and Options
Each common share issued under the placement within Canada will be part of a unit that includes one share and one-half of one share purchase warrant. These warrants, exercisable for three years from the date of issue at a price of C$0.15 per share, provide investors with potential future equity opportunities.
For participants in the CDI placement outside Canada, the company will offer one option to acquire a CDI for every two CDIs subscribed, at no additional cost. These options will have an exercise price of A$0.15 and a three-year expiration period from the issue date of Tranche 1 options. The issuance of options under Tranche 2 will also require shareholder approval.
Regulatory and Market Considerations
Novo Resources intends to apply for official quotation of the options on the ASX, though this is contingent on meeting the ASX Listing Rules. The company has resumed trading on the ASX, with settlement for Tranche 1 securities expected on March 3, 2026. A notice of meeting for Tranche 2 approval will be dispatched shortly to convene the necessary shareholder gathering.
This capital raising initiative highlights Novo Resources' commitment to advancing its multi-district exploration portfolio and strengthening its financial foundation for future growth in the competitive mining sector.
