Net proceeds from a $12 million capital raising will allow Nova Minerals (ASX: NVA) to continue the aggressive and systematic development of its flagship Estelle gold project in Alaska’s prolific Tintina belt.
The company raised the funds through the issue of 109 million ordinary shares at $0.11 each to institutional and sophisticated investors, representing a 15.4% discount to the 30-day volume weighted average price.
The placement will take place in a single tranche and be managed by Evolution Capital Advisors.
Funds will be used to ramp up development and resource growth at Estelle as the company moves along the path towards gold production while further unlocking the potential of the gold district.
It will add to Nova’s cash on hand for drilling programs using additional rigs to expedite the 4.7- million-ounce Korbel deposit to pre-feasibility stage, continue resource development at the nearby RPM deposit, generate new drill targets, and advance numerous prospects across the district.
Aggressive infill and extension drilling is ongoing at the Korbel Main southeast feeder zone with the aim of upgrading resource size and confidence, while work at RPM remains on track for a maiden resource by year end.
Nova chief executive officer Christopher Gerteisen said the capital raising gives the company sufficient funds to move through to the next stage of development.
“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, while ensuring we have enough capital for development,” he said.
“We had multiple funding mandates and offers, and this was the quickest and cleanest presented to us.”
Mr Gerteisen said the funds will allow the company to maintain its exploration momentum at Estelle.
“We will be drilling through the winter and we have ramped up our test work, conducting environmental and metallurgical studies at pre-feasibility level in line with our aim to fast-track Korbel Main towards production,” he said.
“We believe a minor dilutionary effect is far outweighed by the financial security this capital brings in being able to guarantee continued exploration and development at Estelle unabated from a risk management perspective.”
Cash and equivalents
Nova now holds enough cash and cash equivalents to progress to feasibility stage with access to additional funding facilities to move to a decision to mine and construction.
“This puts us in an extremely strong position to achieve our goal of progressing this tier one gold asset to production whilst simultaneously unlocking the greater Estelle gold district,” Mr Gerteisen said.