Novo Resources (ASX:NVO) has initiated a proposed placement of up to 59.1 million units and/or Chess depository interests (CDIs) to institutional, professional, and sophisticated investors, targeting gross proceeds of around CA$5.8 million, according to a Wednesday filing with the Australian bourse.

Units will be issued at CA$0.10 each, with each unit comprising one share and half a share purchase warrant, where each warrant has an exercise price of CA$0.15 and expires three years after issuance, per the filing.

CDIs will be offered at AU$0.105 each, with purchasers eligible for one free option for every two CDIs subscribed, each exercisable at AU$0.15 and expiring three years after issuance, the filing said.

The proceeds will be used to support exploration, including drilling and reconnaissance, at the company's Pilbara projects in Western Australia and the Belltopper gold project in Victoria, as well as for general working capital, the filing added.