Novo Resources (ASX:NVO) said it has received firm commitments to raise gross proceeds of about AU$8.2 million through a placement of about 16.8 million units at CA$0.10 per unit and about 61.1 million Chess Depository Interests ("CDIs") at AU$0.105 per CDI to institutional, professional, and sophisticated investors, according to a Thursday Australian bourse filing.

Tranche 1 placement will comprise the issue of about 8.8 million units and about 50.2 million CDIs for about AU$6.2 million, and tranche 2 will comprise the issue of about 8 million units and about 10.9 million CDIs for about AU$2 million and will be subject to shareholder approval at a general meeting expected to occur in May.

The company's major shareholder, Northern Star (ASX:NST), has committed to participate up to its pro-rata holding of about 9%, and a director has also committed to participate, and the CDIs allocated to them and to Northern Star will be issued as part of tranche 2, the company said.

Each common share issued under the placement within Canada will be issued as part of a unit consisting of one share and one-half of one share purchase warrant, and each free-attaching warrant will be exercisable for a period of three years from the date of issue at CA$0.15 per share.

Participants under the CDI Placement outside of Canada will also be entitled to be made an offer to apply to receive, for no consideration, one option to acquire a CDI for every two CDIs subscribed for and issued under the placement.

Each free-attaching option will have an exercise price of AU$0.15 and will expire three years from the date of issue of the tranche 1 options, the filing added.