The cash injection will help Nova accelerate its development, increase its resources and further unlock the Estelle Gold District, a pocket of very promising precious metals concessions within the prolific gold province of Tintina in Alaska.
(,) has raised A $ 12 million to accelerate development in the Estelle Gold District, a very promising Alaska province where it is pushing a 4.7 million ounce gold resource towards production.
Precious Metals Explorer and Asset Developer Advances Cornerstone Estelle Gold Project with Feasibility Studies to Consider Bringing Key Korbel Main Deposit Online as Source of Gold major in Alaska.
In a host of ASX announcements, Nova also released its annual and sustainability report, detailing its financial and environmental activity as it approaches gold production.
The Alaskan-focused gold company ended the year with A $ 15.5 million to continue operations, with an A $ 12 million raise intended to increase the capital it has available to develop Estelle’s resources. .
“Fastest and Cleanest” Financing Option
Speaking on the company’s plans for the remainder of the year, Nova CEO Christopher Gerteisen said the focus is on growing resources at the key Korbel Main deposit, both in terms of size and confidence.
“This capital increase was born out of the interest of institutional investors and the need to strike a delicate balance between finding the least dilutive financing option, while ensuring that the company has sufficient capital to pass to the next stage of its development.
“The company has multiple mandates and financing offers and this one was presented to us as the fastest and cleanest.
“As the market knows, exploration is capital intensive and we don’t want to slow down our momentum on the Estelle gold district.
“We will be drilling all winter and we have intensified our test work, carrying out environmental and metallurgical studies at the PFS level, in line with our strategy to accelerate the deposit of the Korbel Main deposit towards production while unlocking the big Estelle gold district. “
Drilling continues at two of the main deposits in the Estelle gold district.
To execute the increase, Nova Minerals and lead manager Evolution Capital Advisors issued more than 109 million shares to institutional and sophisticated investors.
The new shares, distributed under NVA’s existing investment capacity and in a single tranche, were priced at AU $ 0.11 each.
This is a 15.4% discount from the 30 day volume weighted average price of Nova shares.
With four rigs currently turning the ground on two of Estelle’s priority targets – the Korbel Main and RPM deposits – Nova is seeking liquidity to continue the program through the extension and definition drilling stages.
Immediately after the announcement of the A $ 12 million cash injection, Nova released its annual report to shareholders, detailing a consolidated after-tax loss and increase in net assets for fiscal year 21.
During the year, Nova spent A $ 2.1 million on operating activities, paid A $ 21 million to cover investing activities and received nearly A $ 35 million from the activities of funding.
The company’s net assets were AU $ 52.6 million for fiscal year 21, up from AU $ 18 million recorded in the previous fiscal year.
Nova was also able to cut its loss for the period – down from over A $ 930,000 to around A $ 3.3 million.
The company ended the year with AU $ 15.5 million to support future operations.
Exploration at the Estelle gold project.
Along with its financial report, Nova also published its pioneering sustainability charter for fiscal year 2021.
As part of its reporting process, the Gold Explorer has chosen to consider its impact on some of the United Nations Sustainable Development Goals (SDGs).
Conceived as a global framework with an overarching goal of ending extreme poverty, reducing inequalities and protecting the planet by 2030, the 17 United Nations SDGs cover sectors, geographies and cultures.
As part of the commissioning of Nova, six of the SDGs apply:
In the sustainability report, the CEO of Nova said: “Just as we have grown the business significantly over the past two years, we have also demonstrated in 2021 that we can adapt to new ways of working, by finding responsible ways to operate, while keeping our employees and communities safe.
“We are committed to further embedding sustainability in the DNA of our company. “
“In the years to come, we believe that companies with strong environmental, social and corporate governance policies will be the most attractive for investments.
“The launch of our sustainability report plays an important role in demonstrating this commitment. “
Gerteisen concluded that he was excited about the future of the company and that its commitment to operational excellence and people would propel it towards its key vision: “to be the leading future community-driven Alaskan gold company. “.
On the ground in Estelle.
The road ahead
Looking ahead, Nova looks forward to moving forward on three fronts through the end of 2021.
First, the gold explorer and project developer will continue to increase the resources of the Estelle gold project, primarily by increasing the Korbel Main deposit beyond the current inferred resource of 4.7 million ounces and establishing a first inferred resource. for the RPM prospect.
At the same time, Nova will continue to move its lithium-focused issuing entity towards NASDAQ listing.
In April 2019, ASX-lister sold 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 its intention to go public in the United States.
Finally, Nova hopes to expand its investor reach in Europe, North America and Asia as it continues to unlock the potential of the Estelle gold district.
Speaking on the road ahead, Gerteisen said: “The fourth quarter should be a time of transformation for Nova and its shareholders.
“We are delighted to have this support from quality investors at this stage of the company’s development.
“Our company’s strategy for the future also involves unlocking value in the world-class Thompson Brothers Lithium project in Canada.
“We are really just getting started at Nova and exciting times lie ahead for our shareholders. “