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Nova Minerals (ASX:NVA) bags AU$12-million funding, Institutional investors’ appetite strong

Highlights

  • Nova raised AU$12 million to ramp up ongoing drilling programs and exploration operations on the Estelle Gold Project.
  • Nova will issue 109 million ordinary shares @ AU$0.11, the placement was priced at a 15.4% discount to 30-day VWAP.
  • Nova is carrying out aggressive drilling on the Korbel Main and the RPM prospects, aiming to beef up the resource potential by the end of 2021.
  • Under its regional exploration program, the Company has identified Train and Shoeshine prospects for follow-up exploration works.

ASX-listed mineral explorer Nova Minerals Limited (ASX:NVA| OTCQB:NVAAF| FSE:QM3) secured AU$12 million in funding from institutional investors.

The Company raised fresh funding through placements of nearly 109 million ordinary shares at AU$0.11. The capital raised will be spent on an aggressive drilling campaign at the flagship Estelle Gold Project.

Related read: Nova Minerals (ASX:NVA) discovers high-grade gold zones at flagship project, shares close in green

Minerals, NVA, Estelle Project, fund raising

Image source: Copyright © 2021 Kalkine Media

Drilling rigs continue to unlock potential of Estelle Project

Nova has engaged drilling rigs for infill and extensional drilling at the Korbel Main as well as resource definition drilling at the RPM prospect on the Estelle Project. The project currently boasts a mineral resource of 4.7 Moz, which is entirely from the Korbel Main. The ongoing drilling campaign is expected to boost the resource potential of the Korbel Main and the delineate maiden resource from RPM. This will lead to an overall increase in the resource potential of the Estelle Project by the end of December 2021.

Related read: Nova Minerals (ASX:NVA) discovers another major mineralised zone within its flagship project

Mr Christopher Gerteisen, CEO of Nova Minerals, informed that the first phase of drilling at the RPM was complete, and assay work is underway to aid the maiden resource of the prospect.

Nova has deployed three diamond rigs and one RC rig at the Korbel Main and the RPM. At the Korbel Main, mineralisation remains open along strike and at depth. As a part of extensional drilling, rigs are testing targets in the North-West direction toward the Isabella and the South-East extension feeder system. To increase the data density for a higher category resource upgrade, infill drilling is also going on simultaneously.

Nova Minerals, NVA, Estelle Project, Long section

Korbel Main long section (Image source: ASX update, 27 September 2021)

Nova is planning to allocate more resources for an advance resource development at the RPM deposit. Apart from RPM and Korbel Main, the Company has identified several prospects, including Stoney (Au-Ag-Cu) and Train (Au). The additional targets contain a 30km mineralised strike that must undergo a drill test.

Related read: Nova Minerals confirms major discovery at RPM prospect, validates NVA’s strategy to unlock Greater Estelle Gold District

Nova is now well financed to advance further for feasibilities studies

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,” said Mr Gerteisen.

Nova had multiple funding mandates and offers, but the Company chose placement as this was the quickest and cleanest of all.

Mr Gerteisen also stated that exploration operations were capital intensive, and the Company did not want to slow down its momentum. Nova has plans to continue drilling even in winter. It has ramped up the test work at the Korbel Main to transition the project towards the production phase. Environmental and metallurgical studies at the Prefeasibility Study (PFS) level are also moving steadily.

On the share dilution, Mr Gerteisen said: “We believe that a minor dilutionary effect is far outweighed by the financial security this capital brings in, guaranteeing continued exploration and development at the Estelle unabated from a risk management perspective.”

According to Mr Gerteisen, Q4 of 2021 is going to be transformational for Nova and its shareholders. The Company also intends to unlock the values of its Thomson Brothers Lithium Project in Canada.

Related read: Nova Minerals (ASX:NVA) soars 9% as the Company declares excellent drilling result

Operations that will be fast-tracked with AU$12-million funding

  • Extensional and infill drilling at the Korbel Main deposit.
  • Drilling on RPM and advance exploration on regional targets to unlock the wider Estelle District.
  • Scoping Study to commence after a drilling program on Korbel Main followed by PFS.
  • Nova intends to carry out early-stage de-risking studies to secure approvals and permits.
  • Revamping site infrastructure, including sample processing, accommodation, access and communication.
  • A part of the funding, nearly AU$2 million, will be utilised as general working capital and cover the costs of the offer.

Bottom Line

The aggressive drilling campaigns and exploration activities on the Estelle Project will lead to an increase in resource potential of the project. The current MRE of 4.7Moz is expected to be upgraded by the end of 2021. Nova has identified several such prospects on the tenure area, which are still untested but have shown significant potential.

Related read: Nova Minerals (ASX:NVA) finds high grade ‘blow out zone’ at Korbel Main, shares up 13%

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