🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Nova Minerals launches US$2.15 million Nasdaq offering to support gold and antimony exploration and accelerate RPM mine PFS

Published 24/09/2024, 03:20 pm
Nova Minerals launches US$2.15 million Nasdaq offering to support gold and antimony exploration and accelerate RPM mine PFS
XAU/USD
-
NTU
-

Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) has launched an underwritten public offering of American Depository Shares (ADS) to raise up to US$2.15 million before costs.

The funding will go toward resource and field exploration programs for gold, antimony, and other critical minerals across NVA’s portfolio. It will also help accelerate optimisation studies for the RPM starter mine pre-feasibility study (PFS), a near-term cash generation opportunity.

The raising was completed in the US following feedback from bankers and potential US investors that they wanted more liquidity in Nova’s NASDAQ listed ADS.

The company is offering 430,000 ADS at a ratio of 1 to 60 to ordinary shares – the equivalent of 25.8 million ordinary ASX shares – for a public price of US$5.00 per ADS.

Nova has also offered underwriters a 45-day option to purchase additional ADS up to 43,000 to cover over-allotments, if any.

NVA’s public offering will close on September 15, US eastern standard time, with ThinkEquity acting as the sole book-running manager.

Gold prices at all-time highs

Nova has already defined a 9.9-million-ounce gold resource across four gold deposits at Estelle, at a time when global gold prices are setting consecutive new all-time highs – gold is hovering at US$2,652 per ounce at present.

NVA is developing the Estelle Project with optionality in mind, keeping multiple pathways for initial project sizing and scale open.

The ongoing PFS for Estelle has been designed to assess alternate strategies to achieve production with a scalable operation, with market conditions and strategic partners in mind.

Read: Nova Minerals considers two production pathways for Estelle Gold Project ahead of PFS

The options currently under consideration are:

  • Establishing an initial lower capex, smaller scale operation at the high-grade RPM deposit for potential near term cashflow at high margins to self-fund expansion plans; and/or
  • Developing a higher capex larger mining operation with increased gold production, cash flow, and mine life, which is of interest to potential future large gold company strategic partners.
  • Antimony potential at Stibium

    With China announcing export restrictions on antimony, Nova is also developing the Stibium Antimony-Gold Prospect. NVA is investigating the Stibium prospect as an additional small scale, stand-alone, quick start up cash flow opportunity, with potential US Department of Defense (DoD) support.

    The company recently began bulk testing of antimony mineralisation at Stibium, the results from which will inform a potential process flow sheet and plant design.

    Read: Nova Minerals begins bulk testing at Estelle Antimony District in Alaska

    Antimony is a highly sought-after critical mineral vital to defence and energy applications.

    Supply has been impacted by a recent export restriction from China, prompting governments to secure new sources to meet demand.

    Nova has submitted a proposal to the US DoD for grant funding, aimed at accelerating production, and believes the timing is right for the grant to be successful given recent supply constraints – China accounted for 48% of antimony production in 2023.

    Read more on Proactive Investors AU

    Disclaimer

    Latest comments

    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.