Home Energy & Mining Sprott Acquires 1.2 Million NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) Shares

Sprott Acquires 1.2 Million NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) Shares

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NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) fell 13.26% after Eric Sprott announced the acquisition of 1.2 million shares over the TSX Venture Exchange. Fillings indicate that the investor paid between $3.90 and $6.33 a share, through Ontario Ltd. The investor also acquired 2.8 million common share purchase warrants priced at $2.10 a warrant, pursuant to a purchase and sale agreement.


Sprott Novo Resource’s Holdings

Sprott now owns 13 million shares of Novo Resources and 10.7 million warrants representing a 9.1% and 15.5% stake respectively, on a non-diluted basis.

“Mr. Sprott has a long-term view of the investment and may acquire additional securities of Novo Resources either on the open market or through private acquisitions or sell securities of Novo Resources either on the open market or through private dispositions in the future depending on market condition,” statement read.

News of Sprott’s new investment appears to have spooked investors seen by the stock dropping from $6.87 a share to $5.91. The sell-off came as a surprise as Novo Resources has been on an impressive run for the better part of the year. The stock is already up by more than 600% after rising from $0.70 a share, to current trading levels.

Purdy Reward Prospect Development

Separately, Novo Resources has received necessary Plan of Work approvals for core drilling operations at its Purdy Reward project which is part of its larger Karratha gold project. The company has engaged the services of Orlando Drilling to undertake diamond drilling at the mine, with FORACO International set to undertake large diameter reverse circulation drilling.

Preliminary trenching activities have already begun Novo Resources having mobilized a 35-tonne excavator to the site. The excavator is to be used to open up several exploration trenches in addition to helping construct drill pads.

“We anticipate diamond core drilling to provide us with a good handle on stratigraphy and target depths. Follow-up large diameter reverse circulation drilling will provide necessary bulk sample material to evaluate grades of this very nuggety gold system ,” said Novo Resources President Dr. Quinton Hennigh.

Calidus Binding Term Sheet Agreement

Separately, NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has signed a binding term sheet with Calidus Resources. Pursuant to the agreement, Calidus will earn 70% interest in and on certain Novo tenements at the Warrawoona project in Western Australia.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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