Novo Resources Corp has announced a C$5.8 million private placement aimed at accelerating gold exploration in Western Australia and Victoria. The capital raise includes shares, warrants, and options offered at a discount to recent market prices.
- Proposed private placement to raise approximately C$5.8 million (A$6 million)
- Issuance of up to 59.1 million units and/or CDIs with attached warrants and options
- Discounted issue prices of approximately 19–25% to recent market prices
- Funds earmarked for exploration in Pilbara region and Belltopper Gold Project in Victoria
- Lead managers to receive broker options subject to shareholder approval
Novo Resources’ Strategic Capital Raise
Australian-listed gold explorer Novo Resources Corp has unveiled plans for a significant private placement, targeting gross proceeds of around C$5.8 million (approximately A$6 million). The raise is structured through the issuance of up to 59.1 million units and/or CHESS Depository Interests (CDIs) to institutional, professional, and sophisticated investors. This move reflects Novo’s ongoing commitment to advancing its exploration projects in Australia’s prolific gold regions.
The units will be priced at C$0.10 per share and CDIs at A$0.105 each, representing a notable discount of roughly 25% and 19.2% respectively against recent market prices. Each unit includes one share and half a warrant, with warrants exercisable at C$0.15 and valid for three years. Additionally, CDI purchasers will be offered free-attaching options exercisable at A$0.15, also expiring in three years, subject to a forthcoming prospectus and ASX approval.
Funding Exploration in Key Australian Gold Provinces
Proceeds from the placement are earmarked primarily for exploration activities, including drilling and reconnaissance, at Novo’s flagship projects in the Pilbara region of Western Australia. This includes the Egina Gold Camp and the Becher Project, where Novo has a joint venture with Northern Star Resources. The Becher Project is geologically analogous to Northern Star’s substantial Hemi deposit, underscoring its potential significance.
Funds will also support exploration at the Belltopper Gold Project in Victoria, as well as general working capital needs. Novo’s diversified portfolio extends beyond Pilbara and Victoria, with interests in New South Wales and lithium joint ventures, positioning the company to capitalize on multiple resource opportunities.
Placement Terms and Market Implications
The placement will not require shareholder approval for the issuance of shares, CDIs, warrants, or options, but broker options granted to the lead managers, Canaccord Genuity and Alpine Capital, will be subject to approval at Novo’s upcoming AGM in June 2026. These broker options, exercisable at C$0.15 and expiring in two years, align the interests of the lead managers with the success of the capital raising.
Investors should note that all securities issued will be subject to a four-month holding period, and CDIs cannot be converted into shares for trading in Canada until this period lapses. The placement remains contingent on TSX approval, with Novo currently in a trading halt pending the announcement of placement results expected on 26 February 2026.
Looking Ahead
By securing this capital injection, Novo Resources is positioning itself to accelerate exploration efforts in some of Australia’s most promising gold districts. The discounted pricing and attached warrants and options provide investors with leveraged exposure to potential future upside, while the company strengthens its balance sheet to fund near-term growth initiatives.
As Novo moves forward, market participants will be watching closely for updates on the placement’s completion, the subsequent ASX quotation of options, and early results from the funded exploration programs. The success of this raise could be a pivotal step in unlocking value within Novo’s extensive Australian resource portfolio.
Bottom Line?
Novo’s capital raise sets the stage for intensified exploration, but execution and market response will be key to unlocking shareholder value.
Questions in the middle?
- Will the TSX approve the placement without conditions, and how quickly?
- How will the market respond to the discounted pricing and attached warrants/options?
- What early exploration results can investors expect from the Pilbara and Belltopper projects?