Artemis Resources Ltd (ASX:ARV) (FRA:ATY) (OTCQB:ARTTF) has executed a binding term sheet with Novo Resources Corp (CVE:NVO) relating to the sale of Artemis’ interests in the Purdy’s Reward and 47K Patch (ARV 70%) gold projects for a total consideration of ~$4.8 million.
On completion of the transaction, the current joint venture agreement between Artemis and Novo will terminate, with Artemis retaining 100% in all projects other than Purdy’s Reward that formed part of the Novo joint-venture.
The transaction with Novo will deliver $0.82 million cash and ~1.6 million shares in Novo (worth about ~$4 million).
Artemis will use the cash proceeds from the transaction towards ongoing exploration work at Carlow Castle, as well as geochemistry at Patersons Central.
It is anticipated that definitive agreements for the transaction will be executed in the coming weeks.
Additional capital for key objectives
Artemis executive director Alastair Clayton said: “The company has been working hard to rationalise the Artemis project portfolio.
“While the Novo Joint-venture was a key catalyst for the company in driving investment into the Radio Hill plant refurbishment and growing Carlow Castle, this transaction simplifies project ownership, and importantly provides additional capital for delivery on key objectives at Carlow Castle and at Patersons Central.
“It has been a pleasure to work with Novo in the past few years and we wish them success in moving forward on 47 Patch and Purdy’s.”