Malmsbury - Victoria, page-13

I thought this may have warranted some further discussion and surprised to see no one posting about it or perhaps even look further into it and the potential impact to GBZ/Malmsbury.

I think this could be a significantly positive outcome for GBZ/Malmsbury, by the looks of it could lead to some increased activity in Malmsbury if the release/media is anything to go by. Could be a nice catalyst to give Malmsbury more than a decent kick now that Novo has plenty of cash to to throw at it (admittedly amongst other things as listed in the release).

Novo only has 2 assets in Victoria ('Victoria' being referenced for use of the funds) both being JV's - Malmsbury with GBZ and Queens with KZR (that adjoins/surrounds to the West/South/East of Malmsbury, with KZR itself holding other project/s that border to the West). We know activity/drilling is happening at Malmsbury currently with further work planned throughout the year and I can't find anything happening currently on Queens at the moment or imminently planned (could be wrong). So perhaps there is a chance to expand the current drilling at Malmsbury? At minimum, surely it makes sense to be much more aggressive and at least get straight back into it after current drilling results are received and interpreted at a much accelerated rate this year? Given this, it would seem that Malmsbury is in a better position than Queens to see accelerated activity this year perhaps.


https://www.globenewswire.com/news-release/2022/04/12/2420751/0/en/Novo-Agrees-to-Sell-Stake-in-New-Found-Gold-for-C-125-9-Million.html

Note - Selected pieces copied form article linked above, below with Victoria underlined by myself to highlight the areas that may relate to GBZ.
Snippets taken from the article -

KEY POINTS

• Novo has agreed to sell its stake of 15 million shares in New Found Gold Corp. (TSXV: NFG) (“New Found”) to a corporation controlled by Eric Sprott for gross proceeds of C$125.9 million pursuant to arm’s length negotiations (the “Transaction”) representing an aggregate 9.3% premium to market
• Completion of the Transaction will leave Novo debt-free and with a pro-forma cash balance of almost C$97 million¹, with funds providing Novo with the flexibility to aggressively advance exploration efforts across the Pilbara and Victoria, while expediting a Feasibility Study on the Fresh component of the Company’s Beatons Creek project in Nullagine, Western Australia

“Novo has always considered its sizeable investment portfolio as a means to fund growth expenditure” commented Mr. Mike Spreadborough, Executive Co-Chairman of Novo. “The sale of our New Found holding at a premium of 9.3% to the closing price of C$7.68 is an excellent result and allows Novo to deleverage our balance sheet, continue to focus on optimizing operations at Beatons Creek and aggressively accelerate growth and expansion plans across Western Australia and Victoria. We would also like to thank Sprott Lending for their support since our transition to operations in late 2020.”

Assuming completion of the Transaction and repayment of the Credit Facility, Novo’s pro-forma cash position is approximately C$97.1 million¹. This funding will provide Novo with the flexibility to aggressively advance exploration efforts across the Pilbara and Victoria, while expediting a Feasibility Study on the Fresh component of the Company’s Beatons Creek project in Nullagine, Western Australia³.