Novo Resources (ASX:NVO) received gross proceeds of AU$11.5 million through the sale of 38% of its shareholding in privately-held San Cristobal Mining, according to a Thursday filing with the Australian bourse.

The transaction exceeds the internal fair value of the San Cristobal shares as recorded on Novo Resources' balance sheet as of Sep. 30.

Following the sale, Novo estimates the remaining stake in San Cristobal to be valued at AU$19 million, the filing said.

The funds from the sale will be directed toward advancing exploration activities in Western Australia and Victoria and repaying the first portion of AU$3 million of deferred consideration due to IMC Holdings by late December.

Following the first payment, the outstanding balance to IMC Holdings will be AU$12.6 million due by 2026, with early repayment options. The Company also paid $90,000 in finders' fees.

Novo's cash balance as of Dec.4 stands at AU$16.7 million.

Novo Resources expects to incur capital gains tax of AU$1.4 million for the sale in the first quarter of 2025.

The company's shares plunged 22% at market close.