Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has agreed to extend its convertible facility with Nebari Holdings, LLC for a further 12 months as it works to unlock the 9.9-million-ounce gold resource within the Estelle Gold District of Alaska.
Nova has entered into a 12-month extension of the Nebari convertible facility via a variation agreement to the previously announced November 21, 2022, loan agreement. Nova has the right to extend the convertible facility by a further 12 months from November 29, 2024, to November 29, 2025.
This extension will allow the company to maintain its progress on the district scale Estelle Gold Project moving into 2024 and beyond.
Adds flexibility into 2024
“While we are very judicious with our use of funds and will continue to be so, this ability to extend the loan term will allow us to continue to maintain our progress on the district scale Estelle Gold Project moving into 2024 and beyond,” Nova CEO Christopher Gerteisen said.
“Right from the start Nebari has been more like a partner than a funder to Nova and we are thankful for the ongoing support that they have provided.
“This ability to extend the facility now gives Nova the flexibility as we enter 2024 with the momentum to grow the business on multiple vectors across the Estelle Gold Project.
"The in-depth formal strategic review process and PFS studies which are investigating additional processing options to further optimise our flow sheet at the lowest possible capex across the project, are now well underway.
“While key objectives of the strategic review remain a work in progress, we will keep our shareholders updated as relevant studies are completed as we continue to unlock the Estelle Gold on our path to commercial production.”
Under the terms of the agreement, Nova will reduce the conversion price under the facility to A$0.53 and pay Nebari the sum of US$55,000 upon the earlier of June 1, 2024, or five business days after Nova’s intended Nasdaq listing. Shareholder approval for the issue of the conversion shares at the new conversion price is required.