Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has received firm commitments for a placement to raise A$30 million (US$20 million) at A$0.70 per share.
This comes along with an up-to US$7 million (A$10 million) convertible facility from leading global gold fund Nebari, convertible at A$1.02, a 30% premium to the 15-day volume weighted average trading price.
An additional US$2 million (A$3 million) is to be made available upon mutual agreement, under similar terms.
In addition, Nebari and its investors, have made firm commitments to cornerstone A$3.25 million of the placement.
Strong endorsement
Nebari has signalled its strong endorsement for Nova's project and strategic plan, completing corporate, geological and governance due diligence, as well as a site visit to the Estelle Gold Project in Alaska.
The company’s directors, management and associates have committed A$1.5 million of the placement, subject to shareholder approval.
The placement has also facilitated the introduction of a number of highly credentialled Australian and offshore institutional investors to the register.
Every two new shares issued under the placement will have one attaching option (approximately 14.3 million options) with an exercise price of A$1.10 and an expiry date of November 30, 2024.
Range of works planned
Once the funding package is finalised, Nova will have the balance sheet strength to undertake an extensive drill campaign with additional rigs in 2023, and progress economic studies and permit works, as it moves towards production.
The cash raised will be funnelled into:
- completing the upcoming Phase 2 scoping study, including the high-grade RPM deposit;
- advancing the trade-off and pre-feasibility study-level works, which have commenced in conjunction with the Phase 2 scoping study;
- continuing environmental, ESG, and pre-feasibility study-level metallurgical studies;
- ramping up the drill program for 2023 with additional rigs to continue to grow the resource across the Estelle Gold Trend, focusing on RPM, Train, Stoney and Korbel;
- accelerating the pre-feasibility study; and
- continuing to explore more than 20 other known prospects across the wider Estelle Gold Trend.
Transformational moment
Nova CEO Christopher Gerteisen said: “Having a leading global gold fund such as Nebari join our register, along with other large institutions, provides a strong endorsement of the size, scale and opportunity at the Estelle Gold Project, which institutions are now recognising.
“We are thrilled to welcome Nebari aboard, who we regard as a partner, not just a funder, and we look forward to working with their highly respected and knowledgeable team to bring the outstanding Estelle Gold Trend to fruition in a way that provides robust returns for all stakeholders.
“This is a transformational moment for Nova and its shareholders.
“This funding provides certainty through our fast-track development approach, while also enabling Nova to continue to undertake value accretive exploration and discovery activities.
“We believe these additional funds will drive long term value for all stakeholders as we continue on our path to commercial production, while unlocking the Estelle Gold Trend.”
Nebari general partner Clark Gillam said: “We are very excited to become part of the Estelle project and supporting the Nova team in developing Estelle. Furthermore, as a proud Alaskan, it is great to become part of another responsible mineral resource development project that this great state has to offer.”
Nebari managing partner Roderik van Losenoord added: “Having visited the site and reviewing the opportunity in detail with our team of experts, we see this investment opportunity as the start of a growing partnership with Nova.”