- Nova Minerals (NVA) raises $12 million to further grow its Estelle Gold Project in Alaska
- The company will issue more than 109 million shares at 11 cents each, a 15.4 per cent discount to the 30 day volume-weighted average price
- Nova currently has three diamond rigs and one reverse circulation rig on site at Korbel and RPM deposits
- Nova closed down 8.33 per cent at 11 cents per share
Nova Minerals (NVA) has received firm commitments to raise $12 million to further grow its Estelle Gold Project in Alaska.
The company will issue more than 109 million shares at 11 cents each, a 15.4 per cent discount to the 30 day volume-weighted average price.
Nova currently has three diamond rigs and one reverse circulation rig on site at Korbel and RPM deposits, located within Estelle.
The new funds will allow extension and definition drilling to ramp up the Korbel Main prospect to feasibility status.
Aggressive and extension drilling is ongoing at Korbel which is currently focused on the high grade SE feeder zone with the goal of substantially increasing the resource.
RPM remains on track for a maiden resource by late 2021, with initial results now in the fire assay stage in the lab.
CEO Christopher Gerteisen is pleased with the capital raise.
“This capital raising came about due to interest from institutional investors, and the need to strike a delicate balance between finding the least dilutionary funding option, whilst ensuring the company has sufficient capital to take it through to the next stage of its development,” he said.
“The company has multiple funding mandates and offers and this was the quickest and cleanest presented to us. As the market is aware, exploration is capital intensive, and we do not want to slow our momentum at the Estelle gold district.”
“Quarter 4 is anticipated to be a transformational period for Nova and its shareholders.”
Importantly, Nova now holds enough cash and cash equivalents to get to feasibility studies and has access to additional funding facilities to take the company to mine and construction.
Nova closed down 8.33 per cent at 11 cents per share.