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Novo Resources strikes US$30M joint venture deal for Pilbara gold project with Japan's Sumitomo Corp

Sumitomo can earn up to a 40% interest in the property by spending up to US$30 million over three years
Novo Resources workers
Novo is developing gold projects in the Pilbara region of Western Australia

Novo Resources Corp (CVE: NVO) (OTCQX: NSRPF) shares advanced Friday as its Egina gold project in Pilbara, Western Australia was boosted by a farm-in and joint venture deal with Japanese trading giants Sumitomo Corporation (OTCMKTS:SSUMY).

Sumitomo can earn up to a 40% interest in the  property by spending up to US$30 million (around C$40.2 million) over three years, with a required minimum of US$5 million (approximately C$6.7 million) per phase defined by a program and budget.

Early stage, high potential

“Novo’s Egina project is an early-stage, high-potential gold project,” said Dr Quinton Hennigh, chairman of Novo Resources Corp in a statement.

“Sumitomo, upon conducting their own technical review, has developed a similar opinion. It is remarkable for an exploration company to team up with a world-class finance partner like Sumitomo," he said, noting the relationship between the two companies had been established over many years. "With Sumitomo’s financial backing, we aim to quickly advance Egina through exploration and test-extraction phases with the ultimate goal, should results prove favorable, of setting the project on a path to production."

In Pilbara, Novo also has the Beatons Creek, Blue Spec and Marble Bar projects and has a land package covering around 12,000 square kilometers with varying ownership interests.

Shares in Toronto gained 6% to stand at $2.13.

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