Novo Resources’ subsidiary Beatons Creek Gold has exercised the option to purchase Talga Resources’ Mosquito Creek, Talga Talga and Warrawoona projects in the Pilbara region of Western Australia.
“Following the $250,000 option fee already received by Talga under the Sale Agreement, Beatons has offered and Talga has agreed to accept 765,115 common share of Novo in lieu of cash payments for the A$750,000 transaction balance remaining,” Talga said in a statement to the ASX.
“Talga will also be due a 1.5% net smelter royalty on any minerals produced from the projects.”
Talga Managing Director Mark Thompson said the sale is conditional on TSX Venture Exchange approval, where Novo Resources is listed.
“We are delighted that Beatons has elected to exercise its option 12 months before the Sale Agreement deadline,” he said.
Beatons previously acquired 100% ownership of 3 mining leases at Beatons Creek from Millennium Minerals Limited. These leases form part of Novo’s Beatons Creek gold project north of the township of Nullagine in the East Pilbara district of Western Australia.
“It is pleasing that the parties could negotiate this outcome that provides Talga with additional potential upside associated with Novo’s Nullagine developments as it advances toward gold production,” Mr Thompson added.