Novo Resources Corp. announce an update to the Quartz Hill Project earn-in agreement with Liatam and also an additional investment by Liatam in Novo of AUD 1.8 million. Liatam has now exceeded the required spend of AUD 1.75 million at the Quartz Hill Project, pursuant to the earn-in agreement announced by Novo on 15 December 20221.

Quartz Hill is located in the Mosquito Creek Basin in the East Pilbara, Western Australia. Following completion of the earn-in requirement, the 80%/20% Quartz Hill Joint Venture (JV) between Liatam and Novo has now been formed. The 80%/20% JV between Liatam and Novo has been formed following completion of the earn-in requirement.

Liatam will now sole fund and free carry all of Novo?s required exploration costs in relation to the joint venture structure, until earlier of: Liatam having completed a Feasibility Study in respect of at least one deposit of Relevant Minerals; and Liatam having sole funded the exploration; capped of AUD 20 million. Following an initial 12-month period of exploration, Liatam made an offer of AUD 200,000 to acquire legal title to the tenements that are the subject of the JV package, which was accepted by Novo. The transaction transfers the title of the tenements to Liatam and they will be the manager of the JV.

Novo has retained its 20% share of battery mineral rights as well as all gold and silver rights on these tenements. The Quartz Hill area is comprised of six granted Exploration Licenses, nineteen Prospecting Licences and one Exploration Licence Application collectively covering approximately 770 sq km. The area is considered prospective for lithium?caesium?tantalum (LCT) style pegmatite mineralisation.

In addition to the formation of the JV, Liatam has signed a subscription agreement and agreed to subscribe for an additional AUD 1.8 million in Novo shares. Subject to receipt of TSX approval, 9,000,000 shares will be issued to Liatam, based on a share value of AUD 0.20 per share, increasing their shareholding from ~3% to ~6%. Liatam has a right to transmute the issued shares into ASX CDIs following a four-month hold.

Following the AUD 10 million transaction with SQM Australia and the investment committed by Liatam, Novo is well positioned to continue to efficiently execute its gold exploration strategy throughout 2024. The funds received will be utilised to advance Novo?s Pilbara exploration drilling and reconnaissance programs in the southern Egina Gold Camp, the Balla Balla Gold project and at Belltopper Project in Victoria.