Novo Resources Corp.’s Acquisition Of Millennium Minerals Limited

Johnson Winter & Slattery advised Novo Resources Corp. on the acquisition of Millennium Minerals Limited.

Millennium owns 291km2 of prospective mineral tenure and key processing infrastructure (including a 1.5Mtpa processing plant, tailings storage facility and 230 room camp) which is adjacent to Novo’s existing tenure in the Pilbara region of Western Australia.

Under the agreements, Novo will buy all shares in Millennium from IMC Resources (and related entities) for approximately A$61 million in Novo shares and warrants. Novo will also fund the repayment by Millennium of IMC’s secured debt (for approximately A$69 million). Novo has agreed to pay IMC deferred consideration in the form of a fee on future gold production up to an amount of approximately A$20 million.

Millennium’s assets are located approximately 10km south of Novo’s 100% controlled Beatons Creek conglomerate gold project in the Nullagine region of the Pilbara in Western Australia, and will provide the required processing infrastructure to accelerate Novo’s planned transition into gold production. The acquisition is expected to complete during the third quarter of 2020 and is subject to customary conditions including the completion by Novo of an acquisition financing.

The Johnson Winter & Slattery team was led by Partners Justin Harris (Picture) and Paul Vinci and also involved Partners Peter Smith, Samantha Daly, David Proudman, Craig Wappett and Marcus Clark and their respective teams.

Other law firms advising on this transaction included Owen Bird Law Corporation as Canadian counsel for Novo; DLA Piper as Australian legal counsel for IMC; and Stikeman Elliott as Canadian legal counsel for IMC.

Involved fees earner: Marcus Clark – Johnson Winter & Slattery; Samantha Daly – Johnson Winter & Slattery; Justin Harris – Johnson Winter & Slattery; David Proudman – Johnson Winter & Slattery; Peter Smith – Johnson Winter & Slattery; Paul Vinci – Johnson Winter & Slattery; Craig Wappett – Johnson Winter & Slattery;

Law Firms: Johnson Winter & Slattery;

Clients: Novo Resources Corp.;

Author: Michael Patrini