Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) will receive $18 million (A$24 million) at a price per share of US$6.00 before underwriting fees and offering expenses after it entered into an agreement for the sale of 3 million shares of Snow Lake Resources Ltd.
The money will fund Nova’s work at its Estelle Gold Project, as it looks to fast track its drilling campaign and related operations.
Snow Lake has been a boon for Nova, having returned approximately 2500%. In further good news, under the agreement there is no dilution for Nova shareholders.
Nova will own 6.6 million Common Shares of Snow Lake, or approximately 37% of the total outstanding common shares of the Company once the agreement is finalised.
The company has agreed to lock-up its remaining shares until March 21, 2023, highlighting Nova’s confidence in, and long-term commitment to Snow Lake, as it advances its vision of becoming a leading North American lithium supplier.
The sale is expected to close on April 12, 2022.
Market starting to recognise Snow lake’s achievements
“We are very pleased by Snow Lake’s progress and performance, and it appears that the market is recognising the strides that they have made in advancing the Thompson Brothers Lithium Project,” Nova CEO Christopher Gerteisen said.
“Nova is currently laser focused on continuing its aggressive drilling campaign and associated resource studies to fast track its Estelle Gold Project. This offering provided us with the opportunity to take a portion of our Snow Lake investment off the table and to fund our upcoming financial commitments with zero dilution to Nova shareholders.
“Snow Lake has been a remarkable investment for us, returning approximately 2,500% in just under 5 years. Nova sees the next 12 months as being an exciting and pivotal time for Snow Lake, as it delivers on its key value creating milestones of advancing and expanding its resource and completing its economic studies.
“In support of this, Nova is pleased to extend the Underwriter Lock-Up on its remaining 37% holding out to 21 March 2023.”
About Snow Lake
Snow Lake is located at the tip of the NAFTA “superhighway”, with easy access to North American battery and electric vehicle manufacturing sites.
The company is committed to developing and operating a fully renewable and sustainable lithium mine that can deliver a completely traceable, carbon neutral and zero harm product to the electric vehicle and battery market in North America.
NB: Nova is currently in suspension and will remain that way pending a further announcement regarding the finalisation of the Snow Lake Block Trade and use of funds, which it expects to make on or before Monday, April 11, 2022.