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- Nova Minerals (NVA) locks in a $30 million funding package consisting of a $10 million convertible loan facility from Nebari Gold Fund and a $20 million share placement
- The company says it will use the cash boost to fund an extensive drill campaign and further progress the Estelle Gold Trend in Alaska towards commercial production
- The convertible facility will consist of an initial $7.5 million loan, convertible at $1.02, with an additional $3 million to be made available upon mutual agreement
- Nova will issue roughly 28.5 million new shares at 70 cents per share to raise the funds, and investors will also receive one attaching option for every two shares purchased
- NVA shares were down 7.8 per cent and trading at 77 cents at 3:41 pm AEDT
Nova Minerals (NVA) has locked in a $30 million funding package consisting of a $10 million convertible loan facility from Nebari Gold Fund and a $20 million share placement.
The company said it would use the cash to fund an extensive drill campaign and further progress the Estelle Gold Trend in Alaska towards commercial production.
The convertible facility will consist of a $7.5 million initial loan, convertible at $1.02 — representing a 30 per cent premium to Nova’s 15-day volume weighted average price (VWAP).
An additional $3 million will then be made available upon mutual agreement by Noa and Nebari and under similar terms.
Under the placement, Nova plans to issue roughly 28.6 million shares at 70 cents per share to raise the $20 million, and investors will receive one attaching option for every two shares purchased, exercisable at $1.10 and expiring on November 30, 2024.
Nebari and its investors have committed to purchase $3.25 million worth of shares under the placement, which has also attracted “a number of highly credentialled Australian and offshore institutional investors to the register”, according to Nova.
Nova secured the convertible loan facility after Nebari completed corporate, geological and governance due diligence for the project, as well as a visit to the Estelle project site.
The company said the funds gave it a balance sheet strong enough to complete an upcoming phase two scoping study, continue metallurgical studies, accelerate a 2023 drill program, continue exploring prospects in the area and fast-track a pre-feasibility study.
Nova CEO Cristopher Gerteisen said he was “thrilled” to be teaming up with Nebari.
“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.”
NVA shares were down 7.8 per cent and trading at 77 cents at 3:41 pm AEDT.
