The Option is conditional upon the removal of a caveat currently registered against the Tenement by a non-arm’s length party to Bellary Dome
Novo Resources is pleased to announce that it has entered into an option agreement with Bellary Dome for the option (the “Option”) to acquire the gold rights in exploration licence 47/3555 located in the Southern Pilbara region of Western Australia (please see figure 1 and figure 2 below). The Option is conditional upon the removal of a caveat currently registered against the Tenement by a non-arm’s length party to Bellary Dome and subsequent registration of the Tenement in Bellary Dome’s name by July 31, 2020.
Subject to satisfaction of the Conditions, the Company will pay Bellary Dome A$25,000 for an initial option period of 12 months from the date of satisfaction of the Conditions (the “Option Period”). At any time during the Option Period, Novo may exercise its Option and earn a 100% gold rights interest in the Tenement by paying Bellary Dome A$1 million and granting Bellary Dome a 2% gross overriding royalty on all gold derived from future production by Novo from the Tenement. Before the expiry of the Option Period, Novo may extend the Option Period to 24 months from the date of satisfaction of the Conditions by paying Bellary Dome A$25,000, 36 months from the date of satisfaction of the Conditions by paying Bellary Dome A$50,000, or 48 months from the date of satisfaction of the Conditions by paying Bellary Dome A$100,000.
“Bellary Dome is a structural uplift along the southern margin of the Pilbara craton,” commented Quinton Hennigh, President, Chairman, and a director of Novo Resources. “Units of the Fortescue Group, including gold-bearing conglomerates, have been upwarped and exposed. This agreement gives Novo rights to one of the most prospective areas in the region, the site of significant gold nugget discoveries by previous landholders within the past few years. I reviewed samples of conglomerate material with in situ gold nuggets from exploration license 47/3555, and these appear very similar to material from our other Pilbara gold projects further north and east. Over the past few years, Novo has developed the in-house protocols to explore and advance projects like Bellary, and we are delighted to have yet another high-quality asset to add to our stable of conglomerate gold projects.”
Source: Company Press Release