Sumitomo Corp. committed to spend up to ¥5 billion to advance Novo Resources Corp.'s gold projects in Australia, according to a Jan. 7 release.
Novo said it extended and expanded a 2017 memorandum of understanding that saw Sumitomo help Novo move the Beatons Creek gold project in Western Australia toward production.
Sumitomo will provide the funds and human resource assistance needed to help Novo evaluate, advance and develop its Australian gold projects.
Sumitomo will also be granted the right to fund a project through a purchase option and, subject to the approval of Novo's board, retain a right of first refusal over the project. The MOU will expire Dec. 31, 2023.
Novo is focused on exploring and delivering projects in the Pilbara region, where it has built up a land package covering approximately 12,000 square kilometers with varying ownership interests.
As of Jan. 4, US$1 was equivalent to ¥108.21.