- Northern Star withdraws under earn-in, JV agreement.
- Data gathered by Northern Star’s exploration activities to be retained by Novo.
- Novo intends to continue exploration activities on Egina tenements.
Novo Resources (ASX:NVO) has this morning confirmed it will continue to explore the Egina gold project in Western Australia, despite partner Northern Star’s (ASX:NST) withdrawal from an earn-in JV. Exploration activities at Egina will now revert to Novo following Northern Star’s withdrawal.
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“As a major shareholder in Novo, Northern Star maintains a very supportive and strategic relationship with our company,” acting CEO Mike Spreadborough said.
“The return to Novo of all Egina gold project data from Northern Star will allow our geological team to undertake a fresh assessment of Egina, its priority in our portfolio, and the best pathway to advance what we believe is an outstanding asset for a gold explorer.
“Egina forms part of Novo’s rich portfolio of potential projects that highlights Novo as a genuine project incubator with extensive exploration activities underway. We plan to work collaboratively with all stakeholders to commence exploration within the Egina Gold Project tenements in the second half of 2026.
“We take our mandate to methodically explore and grow asset value very seriously, and we thrive on this responsibility, and I look forward to bringing progressive operational news to our shareholders through the rest of 2026.”
Novo entered into an earn-in and joint venture agreement in June 2023 with De Grey Mining (subsequently acquired by Northern Star) for the Becher project and adjacent tenements within the Egina Gold Camp.
Under the arrangement, NST was required to satisfy initial expenditure requirements of $7 million. which was achieved in CY24. NST then had the right to earn a 50% JV interest in the Egina tenements by spending an additional $18M through to June 30, CY27, at which time the Egina joint venture would form.
NST has now informed Novo it is withdrawing from the earn-in and so will not meet the further expenditure requirements or earn the 50% interest in the Egina tenements.
Egina is a regional gold belt in the Pilbara and includes the priority Becher prospect.
The Becher prospect is in the northern sector of the Egina gold project and covers a priority area of ~20 sq. km. The Egina gold project also comprises four other high- priority areas: Heckmair, Irvine, Whillans, and Lowe.
The data from Northern Star’s recent activities will be reviewed, and exploration is planned to commence within the Egina gold project tenements in the second half of 2026.
NVO is down -3.85%, to 7.5¢. Mkt cap $32.26M.
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