Novo Resources Corp. said Aug. 15 that it signed definitive agreements with Artemis Resources Ltd. to farm-in and joint venture gold rights over the latter's 1,256-square-kilometer exploration package in Western Australia's Karratha region.
The agreement includes Novo's Karratha gold project, which, in turn, includes the Comet Well property and a recently announced option agreement covering the Pipeline property.
The definitive agreements also cover 38 tenements and tenement applications owned by Artemis. Not included in the deal are Artemis' existing resources and reserves, any gold not hosted within conglomerate and/or paleoplacer type mineralization, minerals other than gold and the company's Mount Oscar tenement.
Under the terms, Novo can earn 50% of the gold rights at Artemis' current and future tenements within 100 kilometers of Karratha by spending A$2 million on exploration within two years.
Upon completing the farm-in commitment, three 50/50 joint ventures will be formed between Novo subsidiary Karratha Gold Pty. Ltd. and three Artemis subsidiaries. The joint ventures will be managed as one by Karratha Gold.
Artemis and Novo will contribute to further exploration and mining of the gold rights on a 50/50 basis.
The definitive agreements were conditional upon Novo obtaining exchange approvals to issue 4 million common shares, worth around A$21.8 million, to Artemis within 10 business days of the agreements being signed.
"Novo and Artemis will soon be undertaking an aggressive program of large diameter drilling and trenching at Purdy's Reward," Novo Resources' Chairman and President Quinton Hennigh said. "Bulk sampling will be key to establishing grade of this very nuggety gold system, and Novo's extensive experience with similar mineralization at its Beatons Creek gold project in the East Pilbara will prove valuable."