In This Article:
Caufield, Australia, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Nova Minerals Limited (“Nova” or the “Company”) (NASDAQ: NVA) (ASX: NVA) (FRA: QM3) is pleased to announce the following key developments that add further cash to the Company’s balance sheet for our 2025 field season, and strengthen its financial position and strategic focus.
Sale of Non-Core Investment
The Company has completed the sale of the 6.6 million shares which it owned in Snow Lake Resources Ltd, realizing gross proceeds of $6.73 million. This strategic divestment aligns with our objective to optimize the Company’s asset portfolio to unlock value for shareholders by further advancing the gold and antimony assets within the Estelle Gold and Critical Minerals Project.
Partial Repayment of the Nebari Loan
$4 million of the proceeds has been allocated to reduce the Nebari loan, leaving just $1.42 million of the facility on the balance sheet. This partial repayment significantly reduces the Company’s debt and leaves additional cash to strengthen the balance sheet, which gives the Company improved financial flexibility to support the continued development of the Estelle Project.
Funding Gold and Antimony Exploration and Development
The remaining proceeds from the sale will be directed towards advancing exploration and development activities at the Company’s Estelle Gold and Critical Minerals Project, in Alaska. The funding is intended to enable the acceleration of development programs aimed at unlocking the full potential of the multiple highly prospective assets across the Estelle Project, with a focus on RPM and the numerous antimony prospects. Antimony is a critical mineral with growing demand in emerging industries and for defense purposes, and the Company is committed to positioning itself as a market leader in this space, while also advancing the development of its gold assets.
Recent US NASDAQ Warrants Exercise Proceeds
The Company’s financial position has also been further strengthened by the exercise of 109,237 warrants over the last few months, which has brought in additional cash funding of approximately $0.79 million.
Outlook
Nova Minerals CEO, Mr Christopher Gerteisen commented: “This transaction starts the year on a very positive note, with further assay results from the 2024 exploration program expected back shortly and many more catalysts to follow in 2025, underscoring our commitment to creating long-term value for our shareholders by actively managing our portfolio, extinguishing debt, and investing in high-potential opportunities.
The sale of Snow Lake, and the additional funds received from the warrants exercise, not only strengthens our financial position, but also enables us to further focus on the exploration and development of our critical mineral assets, such as antimony. This is an exciting time for the Company with the Estelle Gold and Critical Minerals Project well positioned to take advantage of the current macro-economic events for both gold and antimony, and we look forward to providing further updates on the exciting planned 2025 exploration program and other key initiatives in due course.”