Investors in Pilbara gold explorer Artemis Resources (ASX:ARV) are waiting with bated breath after the company entered into a trading halt, pending news on its 4 million shares in high-profile prospector and tenement neighbor, Novo Resources (TSX-V: NVO).
Based on Novo’s current share price of $C5.52, a sale at market value would net Artemis an estimated $C22 million.
The massive cash injection adds to Artemis Resources already hefty war chest, with the company announcing it held approximately $17.4 million in cash at the end of the March quarter.
Artemis received a stake in Novo Resources early into the Pilbara gold rush story. The Canadian explorer earned a 50% interest in a joint-venture operating at the Purdy’s Reward project, located near the WA town of Karratha.
Novo issued 4 million shares, as well as committed to spending A$2 million on the project as part of the farm-in.
Since this time, Purdy’s Reward has returned sizable amounts of ‘watermelon seed’ gold nuggets, which are indicative of a deposit analogous to South Africa’s Witwatersrand, one of the world’s richest gold formations.
Cash from Artemis’s share sale is tipped to be used on its nearby Radio Hill mine plant, accelerating refurbishment activities and fast-tracking the site to an operational stage.
The company’s key deposits are located within 40km of the Radio Hill site.
Artemis has recently submitted amendments to existing licenses and permits to the Department of Water and Environmental Regulation for Radio Hill, to add a new gravity gold circuit and operate the plant at 500,000 tonnes per annum.
The plant will be capable of processing conglomerate gold as well as base metals and cobalt, with Artemis proving to be a prolific base and battery metals explorer – owning a host of prospective West Australian copper, nickel cobalt and platinum prospects.
Shares in Artemis Resources are currently frozen at 19 cents per share.