Nova Minerals offers shareholders option as ‘loyalty bonus’ for ongoing support

Nova Minerals (ASX: NVA) has offered its shareholders a bonus loyalty option to thank them for their continued support in developing the 9.9-million-ounce Estelle gold project in Alaska.

In a letter to shareholders this morning, Nova chief executive officer Christopher Gerteisen said they would be given a bonus loyalty option, which once exercised, would give the holder an ordinary share and a further option in the company.

He said the company is well capitalised with no need for cash.

“The purpose of this loyalty bonus is to reward loyal shareholders.”

“For this reason, the option will be issued at nil consideration and has an exercise date of 12 months, with an exercise date of just over two years on the additional options.”

Inherent value

Mr Gerteisen said Nova’s share price, which closed at $0.35 on Thursday, does not reflect the achievements made at Estelle and its North American lithium spin-out Snow Lake.

Earlier this month, Nova debuted an updated resource for Estelle of 1.1 billion tonnes grading 0.3 grams per tonne gold for 9.9Moz.

The updated resource comprised four deposits, which all remain open. It also includes the “new super high-grade measured component from surface” at the RPM North deposit of 180,000oz at 4.1g/t gold, within a wider 340,000oz at 2.3g/t gold measured and indicated core.

A phase two scoping study on Estelle is due for release in “the coming weeks” and a pre-feasibility study has begun to evaluate mine and processing optimisation, material haulage, environmental and trade-off studies.

“With an interest in two company-making assets in the gold and lithium spaces moving at the same time and at similar stages, Nova has many catalysts for growth and significant near-term upside in key minerals which are both currently in long term bull markets,” Mr Gerteisen explained.

“We are as committed as ever as we continue on our systematic path to production to show the true value of the amazing Estelle gold project, and, furthermore, to create significant value from our investment in Snow Lake lithium,” he added.

The company plans ramp up its efforts in the coming year to expand its investor reach in European, North American and Asian markets.

Well-funded to advance Estelle

According to Mr Gerteisen, the company is adhering to strict budgets in advancing Estelle and is well capitalised following a $30 million raising in November last year that was led by global gold fund Nebari.

In addition to scoping and pre-feasibility work, Nova has planned aggressive explorations for 2023, which will focus on targets proximal to RPM, including the nearby Train area, and a highly prospective 3km long polymetallic outcrop near to the Stoney prospect.

“Under the current plan, the company is fully funded for the upcoming proposed drill program which will … using up to three drill rigs, which as I have stated previously, will concentrate on further growing the resources at RPM and also testing the new exciting targets in the Train area, with the aim to generate a third resource in that area this year for optimum mine plan studies in the pre-feasibility study,” Mr Gerteisen said.