Novo Resources Corp., a prominent mining company listed on the ASX, TSX, and OTCQB, has unveiled plans for a significant private placement aimed at bolstering its exploration activities. The company has appointed Canaccord Genuity (Australia) Limited and Alpine Capital Pty Ltd as lead managers to oversee this capital-raising initiative.
Details of the Placement
The proposed placement is designed to raise gross proceeds of up to approximately C$5,800,000, equivalent to around A$6,000,000. This funding will be secured through the issuance of up to 59,100,000 units or Chess Depository Interests (CDIs) to institutional, professional, and sophisticated investors. The units are priced at C$0.10 per share, while CDIs are set at A$0.105 per CDI.
Structure of Securities
Each unit comprises one share and one-half of one share purchase warrant, with warrants exercisable at C$0.15 per share and expiring three years from issuance. Additionally, purchasers of CDIs will be offered one option to acquire a CDI for every two CDIs subscribed, at no extra cost. These options will have an exercise price of A$0.15 and a three-year expiry period.
The offer of options will be facilitated through a prospectus to be released on the ASX, with Novo seeking official quotation for the options, subject to compliance with ASX Listing Rules. Canadian investors will receive shares and warrants directly, while other international participants will obtain CDIs, with underlying shares held by Chess Depository Nominees Pty Ltd.
Strategic Use of Funds
Proceeds from the placement are earmarked to support extensive exploration efforts, including drilling and reconnaissance at Novo's projects in the Pilbara region of Western Australia and the Belltopper Gold Project in Victoria. A portion of the funds will also be allocated for general working capital purposes, ensuring operational flexibility.
Market Context and Discounts
The issue price for units represents an approximate 25% discount to the market price of shares on the Toronto Stock Exchange, based on the 5-day volume-weighted average price. Similarly, the CDI issue price reflects an approximate 19.2% discount to the last closing price on the ASX as of February 23, 2026. This placement does not require shareholder approval in Australia or Canada, leveraging the company's existing placement capacities.
This strategic move underscores Novo Resources' commitment to advancing its high-quality multi-district exploration portfolio, positioning the company for potential growth in key mining regions.
