Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has raised A$12 million to accelerate development across the Estelle Gold District, a highly prospective Alaskan province where it’s advancing a 4.7-million-ounce gold resource towards production.
The precious metals explorer and asset developer is progressing its cornerstone Estelle Gold Project, with feasibility studies poised to consider bringing the key Korbel Main deposit online as a major Alaskan gold source.
In a slew of ASX announcements, Nova also released its full-year and sustainability report, detailing its financial and environmental activity as it draws closer to gold production.
The Alaska-focused gold company ended the financial year with A$15.5 million to continue its operations, with the A$12 million raise set to increase the capital it has on hand to grow resources at Estelle.
“Quickest and cleanest” funding option
Speaking to the company’s plans for the rest of the year, Nova CEO Christopher Gerteisen said there was an emphasis on growing the resource at the key Korbel Main deposit in both size and confidence.
“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.
“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.”
“We will be drilling through the winter and we have ramped up our test-work, conducting environmental and metallurgical studies at PFS level, in line with our strategy to fast-track the Korbel Main deposit towards production whilst unlocking the greater Estelle Gold District.”
Drilling continues across two of the Estelle Gold District’s key deposits.
Raise details
To execute the raise, Nova Minerals and lead manager Evolution Capital Advisors issued more than 109 million shares among institutional and sophisticated investors.
The new shares — distributed under NVA’s existing placement capacity and in a single tranche — were priced at A$0.11 each.
This marks a 15.4% discount to the 30-day volume-weighted average price of Nova shares.
With four drill rigs currently turning the soil at two of Estelle’s priority targets — the Korbel Main and RPM deposits — Nova is seeking cash to keep the program running into the extensional and definition drilling stages.
FY21 financials
Just after the A$12 million cash injection was announced, Nova released its annual shareholder report, detailing a consolidated loss after tax and a rise in net assets for FY21.
During the financial year, Nova expensed A$2.1 million on operating activities, paid A$21 million to cover investing activities and received nearly A$35 million from financing activities.
The company’s net assets totalled A$52.6 million for FY21 — up from the A$18 million recorded in the previous financial year.
Nova was also able to reduce its loss for the period — down more than A$930,000 to roughly A$3.3 million.
The company ended the year with A$15.5 million to support future operations.
Exploration at the Estelle Gold Project.
Sustainability report
In tandem with its financial report, Nova has also released its pioneer sustainability charter for the 2021 financial year.
As part of its reporting process, the gold explorer opted to consider its impact on some of the United Nations’ Sustainable Development Goals (SDGs).
Designed as a global framework with an overarching aim to end extreme poverty, reduce inequality and protect the planet by 2030, the UN’s 17 SDGs span sectors, geographies and cultures.
In the context of Nova’s move to operation, six of the SDGs apply:
In the sustainability report, the Nova CEO stated: “Just as we have grown the company significantly over the last two years, we have also demonstrated in 2021 that we can adapt to new ways of working, finding responsible ways to operate, while keeping our employees and our communities safe.
“We are committed to further embedding sustainability into our company DNA.”
“In the years to come, we believe companies with strong environmental, social and corporate governance policies will be the most attractive for investment.
“The launch of our sustainability report plays an important role in demonstrating that commitment."
Gerteisen concluded he was excited about the company’s future and that its commitments to operational excellence and people would propel it towards its key vision: “to be the leading Alaskan community-focused future gold mining company”.
On the ground at Estelle.
The road ahead
Looking forward, Nova is eager to advance on three fronts through the remainder of 2021.
First, the gold explorer and project developer will continue to grow the resources at the Estelle Gold Project, mainly by increasing the Korbel Main deposit beyond the current 4.7-million-ounce inferred resource and establishing a maiden inferred resource for the RPM prospect.
In tandem, Nova will continue to progress its lithium-focused investee towards listing on the NASDAQ.
In April 2019, the ASX-lister spun out the Thompson Brothers Lithium Project through Snow Lake Resources Ltd and now owns 73.8% of the company.
Then, on January 22, 2021, Snow Lake Resources announced it planned to IPO in the United States.
Finally, Nova hopes to expand its investor reach in Europe, North America and Asia as it continues to unlock the Estelle Gold District’s potential.
Speaking to the road ahead, Gerteisen said: “Quarter four is anticipated to be a transformational period for Nova and its shareholders.
“We are excited to secure this support from quality investors at this stage in the company’s development.
“Our company’s strategy moving forward also involves unlocking value in the world-class Thompson Brothers Lithium Project in Canada.
“We are truly just getting started at Nova and exciting times lie ahead for our shareholders.”