Manhattan Corp, Novo Resources team up to probe Tibooburra for gold

Nanocap and highly illiquid explorer Manhattan Corporation (ASX:MHC) has struck a farm-in deal with Novo Resources (ASX:NVO) to jointly explore MHC’s NSW-based Tibooburra Gold Project (TGP).

Novo’s subsidiary Beatons Creek Gold Pty Ltd has to spend $500,000 on exploration in the first 12 months and issuing half a million shares to Manhattan.

Should it pay another $1M and issue a further one million shares down the line, Novo can boost its stake to 70% and thereafter form a JV with Manhattan or elect to walk away.

“This Farm In… allow[s] Manhattan to focus its attention on its 100% owned Southern Tibooburra Gold holdings and its 100% owned Chebogue Lithium Project where we expect to have land access shortly following the re-election of the Nova Scotian Provincial Government,” Manhattan CEO Kell Nielsen said.

Nielsen didn’t mention this year’s cratered lithium prices.

“Novo Resources would bring to the Tibooburra Gold a team of highly skilled and experienced technical geologists renowned for their expertise in exploration and mining with a proven track record over many decades in gold.”

Novo has taken an interest in 631sq.km worth of prospective gold acreage called the ‘northern tenements’ of the TGP.

A further nine licences comprising the ‘southern tenements’ remain with Manhattan 100%.

Manhattan described its project on Monday as a “strategic land holding in the emerging Koonenberry Gold District covering 220km of underexplored mineralised gold strike extent holding multi-million ounce gold discovery potential.”

MHC last traded at 2.3cps.

Join the discussion: See what HotCopper users are saying about Manhattan and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.