Canada`s Novo takes a stake in Victorian gold project

Under the terms of the JV agreement, Novo has paid Kalamazoo A$2-million to exercise the consideration.

The Canadian company now has the right to earn a further 20% in the Queens project by spending A$5-million on exploration over the next five years, and an additional 10%, for a maximum 80% shareholding in the project, by delivering a preliminary economic assessment within three years of election.

“We are delighted that Novo has exercised its option to become a 50% holder in the Queens project and enter into an exploration JV with Kalamazoo,” said Kalamazoo chairperson and CEO Luke Reinehr.

“Novo has a similar arrangement on the ground adjacent to our Queens project, so there are obvious synergies for it to consolidate exploration activities at Malmsbury. Given our existing relationships with Novo, as a strategic Kalamazoo investor, and that Novo’s president and chairperson is part of our technical team, it is a great opportunity to merge and apply our technical and regional skills to the exciting Queens project.”