- 1.2 million American Depository Shares offered at US$9.25 each on Nasdaq for US$11.1 million, with a 45-day option to issue more
- Proceeds to accelerate drilling, feasibility work and development of Estelle’s gold-antimony resources
- Nova’s US ambitions are also supported by a Department of Defense funding application to fast-track antimony production.
Special Report: Nova Minerals has announced the pricing of its underwritten public offering in the US for gross proceeds of approximately US$11.1 million.
The Australian-based company will put the funds towards resource and exploration field programs at its 9.9Moz Estelle gold and critical minerals project in Alaska.
Initiatives Nova (ASX:NVA) already has under way include additional drilling and exploration for gold and antimony, feasibility studies for near-term production and general working capital.
The 1.2 million American Depository Shares (ADS) will be offered at US$9.25 apiece, with an ADS-to-ordinary-share ratio of 1 to 60.
In addition, Nova has granted the underwriters a 45-day option to purchase up to an additional 120,000 ADS to cover over-allotments, if any eventuate.
Summer drill drive
Nova is currently making the most of the Alaskan summer to complete a maiden 3000m diamond drill program at the 514km2 project’s Stibium prospect, with the aim to deliver a maiden mineral resource estimate for both gold and antimony this year.
The drill program is following up on a significant mineralised footprint of approximately 800 metres by 400 metres.
Results from the potentially high-grade gold-antimony zone included 12 rock samples of at least 30% antimony with a high of 60.5%, and 16 samples of more than 5g/t gold with a high of 141g/t.
The Stibium prospect is close to Nova’s Whiskey Bravo camp and Estelle’s 6.64Moz bulk tonnage Korbel Main gold deposit.
CEO and executive director Christopher Gerteisen commented: “We’re very pleased to announce the pricing of our American Depository Shares on the Nasdaq, which also reflects our emerging status in the American gold and critical minerals sector.
“The capital from this offering will fund the development of our gold and antimony resources at Estelle, enabling Nova to advance towards becoming a supplier of the much-needed critical mineral for the defence and civilian needs of the US and its allies.”
Another potential booster for rapid progress at Estelle is Nova’s application for US Department of Defense (DoD) funding. This is continuing to progress as the US races to secure its energy supplies and cut dependence on mineral imports.
A market-moving demonstration of this was seen in last week’s decision by the DoD to bankroll a rare earths magnet production line in California and Texas operated by New York listed MP Materials.
If Nova’s application is successful, it intends to fast-track its antimony assets from mining to refining. One of the first initiatives would be adding more diamond drill rigs to this year’s exploration program.
The offering is expected to close on July 16.
This article was developed in collaboration with Nova Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
