Canadian gold explorer Novo Resources Corporation has exercised its joint venture (JV) with ASX-listed Kalamazoo Resources to earn a 50% in that company’s Queens gold project, in Victoria.
Under the terms of the JV agreement, Novo has paid Kalamazoo A$2-million to exercise the consideration.
The Canadian company now has the right to earn a further 20% in the Queens by spending A$5-million on exploration over the next five years, and an additional 10%, for a maximum 80% shareholding in the project, by delivering a preliminary economic assessment within three years of election.
“We are delighted that Novo has exercised its option to become a 50% holder in the Queens project and enter into an exploration JV with Kalamazoo,” said Kalamazoo chairperson and CEO Luke Reinehr.
“Novo has a similar arrangement on the ground adjacent to our Queens project, so there are obvious synergies for it to consolidate exploration activities at Malmsbury. Given our existing relationships with Novo, as a strategic Kalamazoo investor and that Novo’s president and chairperson is part of our technical team, it is a great opportunity to merge and apply our technical and regional skills to the exciting Queens project.”