Gold-focused explorer Novo Resources Corp. said Aug. 11 that it secured an option from an arm's length party to acquire the Pipeline property in Western Australia's Karratha region for 500,000 shares, subject to TSX Venture Exchange approval.

The property comprises seven prospecting licenses, five exploration licenses, six prospecting license applications, three exploration license applications and a miscellaneous license application.

Novo can exercise its right to acquire the property at any time within 12 months of signing in exchange for 2.5 million shares.

Should the company exercise its option, the optionor will retain non-gold rights to the project and a 1% gross royalty on production.