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Novo strikes JV with SQM for lithium-nickel exploration in Australia Novo and SQM Join Forces for Lithium-Nickel Exploration in Australia

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Novo Resources has inked a deal with SQM concerning five potential lithium and nickel exploration sites in West Pilbara. The partnership, named Harding Battery Metals, pays testament to the significance of the Harding River in the region, as stated by Novo.

SQM is shelling out A$10 million to acquire a 75% stake in these locations from Novo and also secures a 12-month option for additional Novo exploration sites in West Pilbara. Novo will retain a 25% interest, as well as full ownership of the gold, silver, PGE, copper, lead, and zinc mineral rights in the region.

Novo’s 25% interest will be borne by SQM until a decision to mine is greenlit by the participants of the Harding Battery Metals JV. Additionally, the Australian miner stands to receive a contingent success payment linked to the lithium content in a JORC compliant ore reserve upon the completion of a feasibility study.

For Novo, the agreement with SQM marks a significant milestone, offering access to battery metals discoveries across a set of sites located near Azure Minerals’ Andover lithium-nickel project and Artemis Resources’ Carlow Castle gold-copper-cobalt project.

Expressing his views on the development, Novo’s acting CEO, Mike Spreadborough, added, β€œSQM has been very active in the Western Australian lithium sector with a ~19% shareholding in Azure Minerals, and a 50% JV with Wesfarmers in Mt. Holland, that among other investments demonstrates that SQM clearly sees the potential of Western Australia for battery metals, as do we for gold.”

Shares of Novo Resources saw a 15.4% surge on the Australian exchange late Monday afternoon, driving the company’s market capitalization to A$298 million.

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