Novo Secures C$5.8M to Fuel Australian Gold and Copper Exploration

PERTH, Australia – February 24, 2026 – Dual-listed gold explorer Novo Resources Corp. has announced a strategic move to bolster its treasury, launching a private placement to raise up to C$5.8 million (approximately A$6 million). The capital injection is earmarked to accelerate ambitious exploration programs across the company’s key Australian assets, including the highly prospective Pilbara region of Western Australia and the historic Belltopper Gold Project in Victoria.

The financing, led by Canaccord Genuity (Australia) Limited and Alpine Capital Pty Ltd, was offered to institutional and sophisticated investors at a significant discount to recent market prices, a move that recalibrated the company’s short-term share value but provides a critical runway to pursue potentially company-making discoveries.

The Price of Progress: Decoding the Placement

Novo's capital raise involves the issuance of up to 59.1 million securities, structured as either Units for Canadian investors or Chess Depository Interests (CDIs) for participants in Australia and other jurisdictions. The Units were priced at C$0.10, while the CDIs were offered at A$0.105. These prices represented a considerable markdown, with the Canadian unit price reflecting an approximate 25% discount to the 5-day volume-weighted average price on the Toronto Stock Exchange (TSX) and the CDI price a 19.2% discount to the last closing price on the Australian Securities Exchange (ASX) before the trading halt.

Market reaction to the discounted offering was swift and predictable. Upon resumption of trading, Novo’s share price on both the ASX and TSX adjusted downwards to align closely with the placement price. While this created immediate pressure on the stock, analysts note that such adjustments are common for junior explorers undertaking financings in a competitive capital market. The discount serves as a powerful incentive to attract the necessary funds, with the ultimate judgment on the strategy's success resting on the results of the exploration it enables.

To further sweeten the deal for incoming investors, the offering was structured with built-in leverage to future success. Each Unit consists of one common share and one-half of a share purchase warrant, with each full warrant allowing the holder to purchase an additional share at C$0.15 within three years. Similarly, CDI purchasers will be offered one free-attaching option for every two CDIs acquired, carrying an equivalent exercise price of A$0.15 and a three-year term. These warrants and options provide potential future upside for investors, aligning their interests with the long-term goal of resource discovery and share price appreciation.

Fueling the Hunt for Australia's Next Big Gold Discovery

The net proceeds from the placement will be immediately deployed to advance fieldwork on two distinct but equally promising frontiers of Australian gold exploration. A significant portion of the funds is allocated to the company’s vast landholdings in the Pilbara region of Western Australia, a globally recognized mineral province.

Work will intensify at the Egina Gold Camp, particularly the Becher Project, which has geological similarities to Northern Star Resources’ nearby 13.6 million-ounce Hemi discovery. The new capital will fund ongoing drilling programs targeting both near-surface oxide gold and deeper primary gold mineralization within what is believed to be a large-scale gold system. Furthermore, Novo will expand its search for copper within its South Egina project, where early-stage surveys have identified several compelling anomalies ripe for drill testing.

Simultaneously, funds will be channeled over 3,000 kilometers southeast to Victoria’s Belltopper Gold Project. Situated in the prolific Bendigo Tectonic Zone, a region that has historically yielded over 22 million ounces of high-grade gold, Belltopper represents a strategic diversification for Novo. The exploration plan here involves a systematic approach of detailed geological mapping, soil sampling, and targeted diamond drilling. The primary objective is to define the extent of known mineralization found in historic workings and, more importantly, to discover new, untouched high-grade gold shoots characteristic of the Bendigo district.

A Strategic Play in a Diversified Portfolio

While the immediate focus of the C$5.8 million raise is gold, the financing strengthens Novo's entire strategic position as a diversified Australian explorer. The company’s overarching goal is to discover standalone projects with development potential exceeding one million ounces of gold, and it has assembled a multi-faceted portfolio to maximize its chances of success.

Beyond the projects directly benefiting from this raise, Novo’s portfolio includes several other key interests. Its farm-in agreement with mining giant Northern Star at the Becher Project provides a pathway to a 50/50 joint venture, de-risking development by leveraging a partner’s financial and operational expertise. In a nod to the green energy transition, the company also maintains exposure to battery metals through a lithium joint venture in the Pilbara with global producer SQM.

Further expanding its geographic and geological footprint, Novo has farm-in agreements on promising gold projects in New South Wales, including the TechGen John Bull and Manhattan Corp. Tibooburra projects. This capital injection, by fortifying the company's balance sheet, indirectly supports the continued advancement of this entire suite of assets, ensuring Novo can maintain momentum across its portfolio and act on value-accretive opportunities as they arise.

Investor Confidence and Financial Fortitude

The decision to raise capital comes at a pivotal time for the company. Financial filings from late 2025 showed a cash position of approximately A$10.5 million and a quarterly operational burn rate of around A$2.5 million. While not in immediate distress, the financing was a prudent and necessary step to ensure its exploration programs could continue uninterrupted and at the required scale. The C$5.8 million infusion effectively extends the company's financial runway by an estimated four to six quarters, providing stability and allowing management to focus on execution in the field.

Importantly, the placement was structured as an equity raise, preserving Novo’s clean balance sheet, which carries minimal long-term debt. The lead managers, Canaccord Genuity and Alpine Capital, will receive a standard 6% cash fee and are expected to be issued broker options, the final terms of which will likely be subject to shareholder approval at the company's Annual General Meeting planned for June 2026. With fresh capital secured, Novo is now fully funded to pursue a critical phase of exploration. The market and shareholders will be watching closely for drilling results from the Pilbara and Belltopper, which will ultimately determine the long-term value created by this strategic financing.