Artemis Resources is selling its stake in Novo Resources to Canadian miner Kirkland Lake Gold for $20.7 million.
Vancouver-based Novo is exploring and developing gold projects in the Pilbara region of Western Australia. Novo and Artemis formed a 50:50 joint venture to develop the Karratha gold project, which includes the Purdy’s Reward and Comet Well prospects, last year.
Kirkland Lake is already a key stakeholder in Novo. Its interest in Novo will increase to more than 29.8 million shares and 14 million warrants, representing 18.9 per cent of its outstanding common shares on an undiluted basis, and 25.5 per cent of the outstanding shares on a partially diluted basis, through the deal.
Artemis, meanwhile, plans to use the funds to explore and develop its own conglomerate gold assessment strategy and to continue a focus on bringing its broad base metals, cobalt and gold asset base into production.
David Lenigas, Artemis executive chairman, said the deal would significantly boost the company’s cash reserves without diluting shareholders.
“Our 50 per cent interest in the exciting Novo/Artemis joint venture in the Karratha area remains unchanged and we are well funded to continue paying our share in JV expenses,” Lenigas said.
“Artemis believes that the decision by Kirkland Lake Gold to increase its position in Novo is further evidence of the strength in the conglomerate and paleo placer gold story.”
Kirkland Lake, which listed on the ASX in late 2017, owns the Fosterville mine in Victoria, as well as assets in Canada.