Nova Minerals Ltd (ASX:NVA) has closed a heavily oversubscribed share purchase plan (SPP) after receiving more than 348 applications for in excess of $3.2 million worth of shares, more than 2.2 times the $1 million amount sought.
Company directors resolved to increase the size the SPP and to scale back on a best as possible equal basis across all eligible shareholder applicants.
The SPP was part of a fundraising initiative with a placement to sophisticated and institutional shareholders, bringing the total capital raise to more than $3.7 million with no capital raising fees.
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Nova’s managing director Avi Kimelman said: “The strong support from our shareholder base has been excellent and demonstrates support for our significant Estelle Gold Project.
“The additional funds raised put Nova in a very strong position to continue aggressive growth plans.”
The company decided to scale back a portion of the SPP taking into consideration near-term upcoming development, dilution factors and options which the company believes will be well in the money at time of the exercise date.
New funds to begin trading on August 6
The funds will be used to:
- Move the Oxide Korbel prospect at Estelle Gold Project to a maiden JORC inferred resource, as well as advance studies and approvals for a permanent camp;
- Continue drilling at the Officer Hill Gold Project; and
- Advance the Thompson Brothers Lithium Project within the Snow Lake Resources spin-off.
Nova expects to complete the SPP allotment and despatch funds and holding statements for new shares to be allotted to shareholders on Monday, August 5, 2019.
The new shares are expected to begin trading on the ASX on Tuesday, August 6, 2019.