Novo’s A$8.2m Placement Hinges on Shareholder Nod and Drilling Success

Novo Resources Raises Capital to Accelerate Exploration

Australian gold explorer Novo Resources Corp (ASX: NVO) has successfully secured firm commitments to raise approximately A$8.2 million through a carefully structured placement. The capital raising, announced in late February 2026, is designed to underpin an ambitious drilling and reconnaissance campaign across several high-priority projects in Western Australia and Victoria throughout the year.

The placement is split into two tranches, with the first tranche already underway and expected to settle by early March. This tranche comprises the issue of units and Chess Depository Interests (CDIs) to institutional and sophisticated investors, including a significant commitment from Novo’s major shareholder, Northern Star Ltd (ASX: NST), which is maintaining its pro-rata holding of around 9%. A company director has also committed to participate, signalling strong insider confidence.

Strategic Deployment of Funds Across Key Projects

Funds raised will primarily support drilling programs at Novo’s flagship Western Australian greenfields projects: Wyloo, Balla Balla, and Teichman. At Wyloo, a 1,500-metre reverse circulation drill program is planned to target a high-grade vein array, with previous rock chip assays showing promising grades of gold, silver, and base metals. Balla Balla will see a 6,000-metre air core drilling campaign aimed at expanding a large polymetallic geochemical anomaly identified in earlier work. Meanwhile, Teichman’s 2,000-metre drill program will focus on shear zones that have yielded impressive gold grades in surface samples.

In Victoria, Novo is preparing for a second-half 2026 drill program at the Belltopper Gold Project, located near Agnico Eagle’s prolific Fosterville Gold Mine. This project offers potential for significant gold discoveries within the historically rich Bendigo Tectonic Zone.

Placement Details and Shareholder Approval

The placement includes free-attaching warrants and options exercisable over three years, providing investors with potential upside while managing dilution. The second tranche, which will raise approximately A$2 million, is subject to shareholder approval expected at a general meeting in May 2026. This tranche includes securities allocated to Northern Star and the participating director.

Novo has resumed trading on the ASX, with the first tranche settlement scheduled for 3 March 2026. The company’s ongoing investment in the San Cristobal Mine continues to generate strong dividends, supporting its financial position as it advances exploration activities.

Looking Ahead

With a robust exploration portfolio spanning over 4,000 square kilometres in the Pilbara and strategic projects in Victoria and New South Wales, Novo is positioning itself for potential significant discoveries. The capital raise and planned drilling programs mark a pivotal step in advancing these assets, with market participants keenly awaiting results that could reshape Novo’s resource profile.