Novus Gold Corp.

Novus Gold Corp.

September 16, 2009 18:06 ET

Novus Gold Corp. Grants Terra Ventures Inc. an Option to Acquire 51% of the REN Property, NWT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 16, 2009) - Novus Gold Corp. (NEX:NOV.H) is pleased to announce that it has entered into an agreement with Terra Ventures Inc. ("Terra") (TSX VENTURE:TAS) pursuant to which Novus has granted Terra an option to acquire a 51% interest in Novus's REN Property in the Northwest Territories. In order to exercise the option, Terra must incur $1,500,000 in expenditures on the REN Property by December 31, 2009. Once Terra has earned its interest, Novus will have the option to repurchase Terra's 51% interest by issuing 7,500,000 shares to Terra (the "Option"). Novus may only exercise the Option if it is a Tier 2 issuer on the TSX Venture Exchange at the time of exercise and if the exercise will not result in Terra becoming a control person of Novus, which will occur if the exercise results in Terra owning 20% or greater of Novus's issued shares. Based on Novus's current issued share capital, if the Option were exercised Terra would own about 26.9% of Novus. The transaction has been approved by the independent directors of each company on that company's behalf, and is currently subject to regulatory approval.

The REN Property hosts banded iron-hosted gold showings in the Point Lake area, approximately 90 kilometres southwest of the formerly producing Lupin gold mine owned by Echo Bay Mines. Drilling was carried out on gold showings on the REN Property between 1974 and 1990 by Texasgulf, Cominco and Westview.


Mike Magrum, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Novus Gold Corp.
    Gunther Roehlig
    (604) 688-0335
    (604) 683-7161 (FAX)