Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) has bolstered its financial position through the sale of a non-core investment – its holding in Snow Lake Resources (NASDAQ:LITM) Ltd – along with a strategic reduction in debt and proceeds from the exercise of its Nasdaq-listed warrants over recent months.
Sale of Snow Lake shares
The company successfully divested its 6.6 million shares in Snow Lake Resources Ltd, generating gross proceeds of US$6.73 million (A$10.85 million).
This will allow the company to optimise its asset portfolio and focus on high-priority gold and antimony development at the Estelle Gold and Critical Minerals Project in Alaska.
“This transaction starts the year on a very positive note, with further assay results from the 2024 exploration program expected back shortly and many more catalysts to follow in 2025, underscoring our commitment to creating long-term value for our shareholders by actively managing our portfolio, extinguishing debt and investing in high-potential opportunities,” Nova Minerals CEO Christopher Gerteisen said.
“The sale of Snow Lake and the additional funds received from the warrants conversion, not only strengthens our financial position but also enables us to further focus on the exploration and development of our critical mineral assets, such as antimony.”
The proceeds enhance financial flexibility and provide critical funding for the company’s 2025 field season.
Debt reduction and financial flexibility
Nova also allocated US$4 million from the sale to partially repay its Nebari loan facility, reducing the outstanding balance to US$1.42 million.
This repayment strengthens the company’s balance sheet, providing additional cash flow to support ongoing exploration and development activities.
The remaining funds will accelerate development programs at the Estelle Project, focusing on high-potential areas, including the RPM deposit and antimony prospects.
The company is leveraging the growing demand for antimony, a critical mineral used in defence and emerging industries, to position itself as a leader in the sector while continuing to advance its gold assets.
Additional funding through Nasdaq warrants
Nova has also reinforced its financial standing with US$0.79 million (A$1.28 million) in proceeds from the exercise of Nasdaq-listed warrants over recent months.
“This is an exciting time for the company with the Estelle Gold and Critical Minerals Project well positioned to take advantage of the current macro-economic events for both gold and antimony, and we look forward to providing further updates on the exciting planned 2025 exploration program and other key initiatives in due course,” Gerteisen said.