Novo Resources plans C$5.8 million private placement at discount

Novo Resources Corp. (ASX: NVO) (TSX: NVO) announced a proposed private placement to raise up to C$5.8 million (A$6 million) through institutional and sophisticated investors.

The placement will issue up to 59.1 million units at C$0.10 per share or Chess Depository Interests at A$0.105 per CDI. Each unit includes one share and half of one share purchase warrant with an exercise price of C$0.15, expiring in three years.

The unit issue price represents a 25% discount to the five-day volume-weighted average price on the Toronto Stock Exchange, while CDI pricing reflects a 19.2% discount to the February 23, 2026 closing price on ASX.

Canaccord Genuity (Australia) Limited and Alpine Capital Pty Ltd will serve as lead managers and bookrunners for the placement. The managers will receive capital raising fees equal to 6% of proceeds plus up to 8.27 million unlisted broker options, subject to shareholder approval at the June 2026 annual general meeting.

Novo stated proceeds will fund exploration activities including drilling and reconnaissance at Pilbara region projects in Western Australia and the Belltopper Gold Project in Victoria, plus general working capital.

All securities issued will be subject to a four-month hold period from closing. The placement requires Toronto Stock Exchange approval and will be completed within the company's existing placement capacities without shareholder approval.

The company is currently in a trading halt on ASX pending placement results, expected before trading commences February 26, 2026, according to the company's statement.

You May Also Be Interested In

• Kimi K3 AI breakthrough: What Wall Street analysts say about China’s OpenAI threat
• Boxabl completes SPAC merger, begins trading on Nasdaq at $3.5B value
• Alpha Compute names Enzo Villani as president