IMC is pleased to announce that an agreement has been signed with Novo Resources Corp on 4 August 2020 to sell all of the shares of Millennium Minerals Limited (“Millennium”), a wholly owned subsidiary of IMC.
Under the terms of the agreement, Novo will acquire all shares of Millennium in exchange for approximately A$61 million of Novo units (each unit comprised of one common share and one-half of one common share purchase warrant). Following completion of the acquisition, Millennium will be required to repay IMC’s secured debt of approximately A$69 million by way of the payment of A$60 million in cash and the balance of A$9 million in Novo units. To the extent Millennium does not have sufficient funds to repay IMC’s secured debt, Novo will provide funding to Millennium to allow repayment (and will issue the Novo units at Millennium’s direction). Novo has also agreed to pay to IMC deferred consideration in the form of a fee on future gold production equal to 2% of all gold revenue generated by Novo up to the later of cumulative gold production of 600,000 ounces or cumulative payments of A$20 million having been made to IMC.
Millennium’s assets are located approximately 10 km south of Novo’s 100% controlled Beatons Creek conglomerate gold project in the Nullagine region, Shire of East Pilbara, Western Australia. The sale of Millennium opens the door to a long-term partnership with Novo, and IMC looks forward to engaging with Novo as shareholders in the course of Novo’s transition to becoming Australia’s next junior gold producer via production at its Beatons Creek Project.
For further details, please refer to Novo’s website at https://bit.ly/30wAusH