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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.
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