Pilbara-focused diversified explorer Artemis Resources (ASX:ARV) is A$21 million richer after finalising the sale of its shares in high-profile gold prospector and tenement neighbour Novo Resources (TSX-V: NVO).
The sale, announced earlier this month, is for the 4 million common shares Artemis holds in Novo at a price of C$5 per share to mid-tier Canadian gold producer Kirkland Lake Gold (ASX:KLA).
The massive cash injection adds to Artemis Resources already hefty war chest, with the company announcing it held approximately $17.4 million in cash at the end of the March quarter.
Artemis received a stake in Novo Resources early into the Pilbara gold rush story. The Canadian explorer earned a 50% interest in a joint-venture operating at the Purdy’s Reward project, located near the WA town of Karratha.
Novo issued 4 million shares, as well as committed to spending A$2 million on the project as part of the farm-in.
Since this time, Purdy’s Reward has returned sizable amounts of ‘watermelon seed’ gold nuggets, which are indicative of a deposit analogous to South Africa’s Witwatersrand, one of the world’s richest gold formations.
Cash from Artemis’s share sale is tipped to be used on its nearby Radio Hill mine plant, accelerating refurbishment activities and fast-tracking the site to an operational stage.
Shares in Artemis have gained 0.5c to 23.5c in morning trade.