Novo Resources closes first tranche of financing

Executive Summary

• Novo Resources Corp. completed Tranche 1 of its equity placement, raising approximately C$5.90 million (A$6.20 million) through the issuance of 8.4 M units in Canada and 50.6 M CHESS depository interests abroad.
• The company recorded a valuation reduction on its investment in Elementum 3D of C$12.84 million (A$13.18 million).
• An additional impairment of C$10.36 million (A$10.67 million) was recognized for relinquished or sold tenements, reflecting lower asset values as of year‑end 2025.

Key Details

• Placement Structure:
• 8.4 M units at C$0.10 per unit to Canadian investors; each unit = 1 common share + ½ share purchase warrant.
• 50.6 M CHESS depository interests (CDIs) at AU$0.105 per CDI to non‑Canadian investors; each CDI is backed by one common share.
• Gross Proceeds: Approximately C$5.90 million (AU$6.20 million).
• Use of Proceeds: Not explicitly stated in the release; proceeds from the placement are available for general corporate purposes pending shareholder approval of Tranche 2 at the upcoming AGM (anticipated May 2026).
• Valuation Update – Elementum 3D Investment:
• Holding value reduced by C$12.84 million (AU$13.18 million) due to updated market and trading conditions.
• Adjustment will be reflected in the financial statements for the year ended Dec 31 2025, to be released shortly.
• Tenement Impairment:
• Impairment charge of C$10.36 million (AU$10.67 million) related to tenements relinquished or sold during FY 2025.
• Consistent with the company’s accounting policies and prior annual adjustments; will appear in the same year‑end financial report.
• Future Financing: Tranche 2 of the placement requires shareholder approval at the AGM (expected May 2026).

Notable Quotes

(No direct quotes were provided in the release.)