ASX / Media Announcement 11 May 2018
Artemis Signs Novo Share Sale Deal to Bank $20 million
Artemis Resources Limited (“Artemis” or “the Company”) (ASX: ARV) advises that it has signed a Sale and Purchase Agreement (“SPA”) by which Artemis will sell its 4 million Novo Resources Corp. (“Novo”) shares to Canadian mining company, Kirkland Lake Gold Ltd (ASX:KLA, TSE:KL) (“Kirkland Lake Gold”), for total gross proceeds of A$20.7 million, being the Australian dollar (AUD) equivalent of Canadian dollars (CAD) $5.00 per Novo share (using an exchange rate of 1 CAD = 1.04 AUD).
The share sale transaction was arranged on an unsolicited basis. Completion of the share sale transaction will significantly strengthen the Company’s balance sheet and provide significant funds to explore and develop its own conglomerate gold assessment strategy and to continue Artemis’s focus on bringing its broad base metals, cobalt and gold asset base in to production, with no dilution to shareholders.
As a condition to completion, Novo shall release Artemis from the contractual 12 month hold period for these shares, which was originally due to expire in August this year. Deal closing is expected by the end of May.
David Lenigas, Artemis’s Executive Chairman, commented;
“This $20 million deal will significantly boost Artemis’s cash reserves without diluting shareholders. Our 50% interest in the exciting Novo/Artemis joint venture in the Karratha area remains unchanged and we are well funded to continue paying our share of JV expenses. Artemis believes that the decision by Kirkland Lake Gold to increase its position in Novo is further evidence of the strength in the conglomerate and paleo placer gold story.”