Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has received binding commitments to raise $1 million in a placement to long-term current shareholders, management and directors.
This funding is a bridging raise to strengthen the balance sheet prior to the company’s proposed US listing, which is said to be on track for completion this quarter, subject to market conditions, market listing approval and satisfaction of US regulatory requirements.
The placement was at A$0.24 per share, which is a discount of 4% to the last closing price of A$0.25, and was completed “at minimal dilution in the best interest of shareholders”.
Nova has an existing cash balance of around A$4.5 million in the bank, and with this A$1 million raising — along with the ability to raise a further US$2 million (~A$3 million) from the existing Nebari convertible facility — Nova is well funded with access to around A$8.5 million.
The company says this should enable it to complete both the proposed US listing and commence the 2024 field programs. However, the company is also investigating other non-dilutive funding opportunities including grants for critical minerals, royalty and streaming.
The company notes that US institutional investors, including several resource companies and high net worth family offices, had shown a strong interest to participate in this placement.
However, due to the tight time frame, and in consideration of the significant progress the company has made towards completing its proposed US listing, it decided to finalise the placement, return to trading and remain in discussion with the respective parties as it now proceeds towards finalising the US listing.
A strengthened position
Nova CEO Christopher Gerteisen said: “The proposed US listing is progressing and has made significant progress. We believe the bridge raising strengthens our position to finalise the proposed US listing and plan our 2024 field programs.
“Due to the high level of interest already shown from US investors, we provided them the opportunity to participate in this bridge round. However, in the end, in light of the progress we have made and a bullish gold market, the company made the decision to resume trading and close the raise.
“We believe the placement is sufficient to meet the company’s short-term objectives, while minimising dilution to shareholders. The company decided to continue with a limited placement to our directors and long-term shareholders, who continue to show support for the company.”