The GBM Units were paid for by the issuance of 197,907 common shares of Novo
Novo Resources announced that it has completed its subscription for 9,090,909 units (each a “GBM Unit”) of GBM Resources (GBM). The GBM Units were paid for by the issuance of 197,907 common shares of Novo which are subject to a statutory hold period expiring on August 6, 2020.
Each GBM Unit is comprised of one ordinary share of GBM and one-half of one ordinary share purchase warrant (each a “GBM Warrant”). Each of the 4,545,545 GBM Warrants entitles Novo to purchase one ordinary share of GBM at AUD $0.11 until April 6, 2023. Following the issuance of the GBM Units, Novo owns approximately 4.13% of the issued and outstanding ordinary shares of GBM.
Novo has also been granted an option and an additional earn-in right to acquire up to an aggregate 60% interest in GBM’s Malmsbury gold project (the “Malmsbury Project”), located in the Bendigo zone of Australia’s Victorian goldfields (together with the aforementioned subscription, the “Transaction”), with the possibility of the interest being increased to a 75% interest. The Company is currently evaluating its social licence to explore the Malmsbury Project and conducting other due diligence while awaiting confirmation of the grant of the Malmsbury Project Retention Licence RL6587 to GBM.
The Transaction was subject to approval from the TSX Venture Exchange and other customary regulatory approvals for transactions of this nature, all of which have been obtained.
Source: Company Press Release