Artemis Resources’ hunt for Pilbara conglomerate gold and plans to bring its base metals into production has received a significant cash boost after offloading all its shareholding in joint venture partner Novo Resources for a tidy A$20.7 million.
Canadian mid-tier gold miner and Pilbara conglomerate gold devotee Kirkland Lake Gold has inked a share purchase agreement to acquire the 4 million shares Artemis holds in Novo, upping its stake in fellow Canadian gold play from ~23.1% to ~25.5% on a partially diluted basis.
As a condition to completion, Novo shall release Artemis from the contractual 12-month hold period for these shares, which was originally due to expire in August this year.
The acquisition is scheduled to close on or before the end of this month.
Artemis’ Executive Chairman David Lenigas said the $20 million deal significantly boosted 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 of JV expenses, he 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.”
Funds raised will go towards exploring and developing its conglomerate gold assessment strategy and focus on bringing its broad base metals, cobalt and gold asset base in to production.
Artemis received a stake in Novo early into the Pilbara gold rush story. The Canadian explorer earned a 50% stake in a joint-venture operating at the Purdy’s Reward project, located near 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.
Novo was Kirkland Lake’s first foray in Pilbara conglomerate gold with the company also backing De Grey Mining to the tune of $5 million last year after it found 91 gold nuggets at its Pilbara project.
Shares in Artemis have gained 1c to 20c in Friday trading.