Newmont Mining (NYSE:NEM) has taken a big stake in Australia-focused gold junior Novo Resources (CNSX:NVO).
On Thursday Newmont announced that it acquired 35.7% of Novo Resources acquiring 17.76 million shares from two shareholders of Novo. The price to be paid by Newmont for the common shares acquired under the two agreements is 91.4 cents, in cash, per common share and 90 cents, in cash, per common share, respectively.
Novo is focused on Beatons Creek and Marble Bar in Australia's Pilbara region.
Novo says the area it is examining shares many similarties with the Witwatersand Basin in South Africa, host to the largest gold field on earth.
Newmont Mining closed the week down 4.4% to $30.43 a share.
Northern Miner notes that Newmont Mining and Novo Resources' owner tried to do a deal in 2005 but couldn't come to terms.