Novo Resources arranges $5.8-million private placement

Executive Summary

• Novo Resources Corp. has engaged Canaccord Genuity (Australia) Ltd. and Alpine Capital Pty. Ltd. as lead managers to raise up to approximately $5.8 million CAD ($6 million AUD) via a private placement of securities to institutional, professional, and sophisticated investors.
• The placement involves the issuance of up to 59.1 million units and/or CHESS depository interests (CDIs), priced at 10 Canadian cents per share and 10.5 Australian cents per CDI, respectively.
• Proceeds will be utilized to support exploration activities (including drilling) at the Pilbara region projects and the Belltopper gold project in Victoria, alongside general working capital needs.

Key Details

• Gross Proceeds: Up to approximately $5.8 million CAD (approx. $6 million AUD).
• Securities Issued: Up to 59.1 million units and/or CDIs.
• Pricing:
  • Units: 10 Canadian cents per share.
  • CDIs: 10.5 Australian cents per CDI.
  • Discounts: Approximately 25% discount to the 5-day VWAP on the Toronto Stock Exchange (TSX) and approximately 19.2% discount to the last closing price of CDIs on the ASX on Feb. 23, 2026.
• Unit Composition: Each unit consists of one share and one-half of one share purchase warrant.
• Warrant Terms:
  • Exercise Price: 15 Canadian cents per share.
  • Expiry: Three years from the date of issue.
• Option Terms (for CDI holders):
  • Eligibility: One option to acquire a CDI for every two CDIs subscribed for and issued.
  • Exercise Price: 15 Australian cents per CDI.
  • Expiry: Three years from the date of issue.
  • Quotation: Subject to ASX approval (no assurance granted).
• Use of Proceeds:
  • Exploration activities (drilling and reconnaissance) at projects in the Pilbara region of Western Australia.
  • Exploration activities at the Belltopper gold project in Victoria.
  • General working capital purposes.
• Hold Periods:
  • All securities: Four-month hold period from the date of closing.
  • CDIs: Cannot be converted into shares for trading in Canada until four months have elapsed from the issue date.
• Broker Compensation:
  • Lead managers receive up to 8,273,557 unlisted broker options to acquire CDIs.
  • Broker Option Exercise Price: 15 Canadian cents.
  • Broker Option Expiry: 24 months from the date of issue.
  • Capital-raising fees: 6% of the proceeds of the placement.
  • Shareholder approval for broker options is required at the annual general meeting planned for June 2026.
• Regulatory Status:
  • Not subject to shareholder approval in Australia or Canada.
  • Subject to receipt of necessary approvals from the TSX.
  • Company is currently in a trading halt on ASX pending the release of placement results.
  • Trading on ASX expected to resume on Feb. 26, 2026.

Notable Quotes

• None explicitly quoted in the text.