Nova bolsters balance sheet to grow Estelle gold and antimony resources

Nova Minerals sells non-core investment for $10.85m to unlock massive Estelle gold project
Funds will be used to cut debt and pursue ambitious field season across Estelle in Alaska’s prolific Tintina Belt
Nova secured an additional US$790,000 (A$1.28m) from the exercise of Nasdaq-listed warrants in recent months

Special Report: Nova Minerals has kicked off the new year on a high note with a $10.85 million boost to its balance sheet without dilution for advancing its flagship Estelle gold and antimony project in Alaska.

The move provides crucial funding for Nova’s (ASX:NVA) ambitious 2025 field season while improving its financial flexibility for 2025 and beyond.

In Alaska’s prolific Tintina belt, Estelle’s mineralisation is hosted across a 35km-long corridor containing samples grading as high as a whopping 1,290 grams per tonne gold and 60.5% antimony.

As well as looking to grow Estelle’s current JORC resource of 9.9Moz gold, including the priority 1.24Moz RPM deposit, Nova will focus on high-potential antimony prospects across the 514km2 property.

This will position the company to capitalise on the critical mineral’s 300% 2024 price hike following China’s blanket ban on exports to the US last month. That followed a restrictions already in place since September.

Ongoing targeted exploration early this year will include drilling at the Stibium antimony discovery and the Styx prospect.

Nova, through its 100% owned subsidiary Alaska Range Resources, is on the front foot in the race to develop western antimony supply chains, with a well advanced US Department of Defense grant application. Subject to receiving such a grant, Nova could kickstart production as soon as this year.

Financial flexibility

The fresh injection of cash comes from the strategic divestment of 6.6 million shares held in Snow Lake Resources for gross proceeds of US$6.73m, or ~A$10.85m.

A portion of the funds, US$4 million, was allocated to partially repay Nova’s loan facility with specialist mining fund Nebari, cutting the outstanding debt to just US$1.42m (A$2.29m).

The remaining funds will be used to directly fast-track exploration and development at Estelle.

Nova secured an additional US$790,000 (A$1.28m) from the exercise of Nasdaq-listed warrants in recent months.

Positioned for growth

CEO Christopher Gerteisen said the transaction started the year on a very positive note as the team looks forward to more assay results from a 2024 exploration program shortly.

“We have 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,” Gerteisen said.

“The sale of Snow Lake, and the additional funds received from the warrants conversion, 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 Nova, with the Estelle Gold and Critical Minerals Project well positioned to take advantage of the current macro-economic events for both gold and antimony.

“We look forward to providing further updates on the exciting planned 2025 exploration program and other key initiatives in due course.”

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.