Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) has eliminated all debt from its balance sheet as it develops the Estelle Gold and Critical Minerals Project in Alaska into a tier-one gold asset and helps secure a US domestic supply chain for antimony, a strategically important mineral.
Nova has reached an agreement with Nebari Gold Fund 1, LLP to eliminate its existing convertible debt facility, by converting the full outstanding balance into ordinary shares.
Nebari intends to continue its partner role, now as a supportive shareholder in the operational phase of the project as Nova unlocks future value in the Estelle Project in Alaska’s prolific Tintina Gold Belt.
This comes shortly after Nova’s sale of its non-core investment in Snow Lake Resources (NASDAQ:LITM) Ltd, which realised gross proceeds of US$6.73 million (A$10.85 million).
Read more: Nova Minerals strengthens balance sheet with non-core asset sale and reduced debt
After the debt conversion by Nebari, Nova will retain all the proceeds from the Snow Lake sale for the development of the Estelle Project. And with further NASDAQ warrants exercised over the last few days, Nova now holds A$16 million in cash to accelerate its development plans.
Serious vote of confidence
Nebari has been involved with Nova for more than two years and during that time has demonstrated a strong understanding of the industry and challenges involved in bringing new projects to fruition, building on its reputation as a highly respected and experienced financier of precious metals and other mining projects globally.
“This conversion is a serious vote of confidence by Nebari, which brings us a step closer to realising our vision which is to concurrently develop Estelle into a tier-one gold asset and to help secure a US domestic supply chain for the strategically important mineral antimony,” Nova CEO Christopher Gerteisen said.
“Establishing a domestic source of the critical mineral antimony is more important than ever and we stand ready to responsibly produce critical resources here at home and help strengthen America’s national and economic security.
“With a solid cash backing and zero debt now, 2025 is looking to be an exciting and transformational year for the company as we continue to advance both our gold and antimony assets in unison towards production.”
Taking a partner approach
Nebari senior managing director Roderik van Losenoord said: “At Nebari, we are exclusively focused on sustainable financing solutions within the mining sector. Taking a partner approach is at the heart of what we do and this allows us to work with our borrowers to accelerate growth and realise value.
Nebari will convert the balance of the Nebari Note US$5.42 million to ordinary shares at A$0.25 per share in accordance with the terms of the Nebari Note, and approved by shareholders at the company’s AGM on November 14, 2024.
“Nebari expresses its confidence in Nova by converting our facility, which now leaves Nova debt-free, ensuring all capital can be used for the development of its numerous opportunities at the Estelle Gold and Critical Minerals Project,” van Losenoord said.
“We’d like to thank everyone involved at Nova and the strong relationship we have formed. We look forward to continuing our role as a supportive shareholder and potential future further funding partner, as Estelle continues along its path towards production.”
Nebari co-founder Clark Gillam added, “As an Alaskan, I can’t think of a better show of support to Nova than exercising our debt and converting to equity. It shows Nebari’s confidence in the quality and future value of Nova’s assets, Nova’s great team of professionals and Alaska as a state where sustainable mining projects for future-critical minerals can be developed.”