Nova Minerals has entered into a 12-month extension of a US$7 million convertible facility secured with global gold fund Nebari to fast-track exploration at the Estelle gold trend in Alaska.
The extension has been exercised via a variation to the original agreement taken out in November 2022, which outlined Nova’s right to extend by a further 12 months from the current maturity date of November 2024.
Under the terms of the variation, Nova will reduce the original conversion price from $1.02 to $0.53 and pay Nebari US$55,000 at the time of its listing on the NASDAQ exchange or by June 2024.
Nova’s NASDAQ presence is expected to help the company obtain US state and federal grants and funding options for the development of Estelle.
The listing is scheduled for completion in the June quarter.
Maintaining focus
Nova chief executive officer Christopher Gerteisen said the convertible extension would allow the company to maintain its focus on Estelle’s district-scale potential over the immediate term.
“We are very judicious with our use of funds [and] right from the start Nebari has been more like a partner than a funder to Nova and we are thankful for the company’s ongoing support,” he said.
“The ability to extend the facility gives us flexibility and momentum to grow the business on multiple vectors across the Estelle gold project.”
“The in-depth formal strategic review process and pre-feasibility studies, which are investigating additional processing options to further optimise our flow sheet at the lowest possible capital expenditure across the project, are now well underway.”
Mr Gerteisen said the company’s key objective was to unlock the 9.9 million ounce gold resource within the Estelle district.
Cornerstone contribution
Nova secured the convertible facility with Nebari in late 2022, at which time the fund and its investors also committed a cornerstone contribution of $3.25m of a $20m share placement.
Funds raised were used to fast-track resource and exploration drilling and accelerate economic studies along the path to commercial production.
At the time, Mr Gerteisen said the company’s ability to attract Nebari’s attention was a big win for shareholders.
“This is a transformational moment for Nova… it provides a strong endorsement of the size, scale and opportunity at Estelle.”
“We are thrilled to welcome Nebari onto our register and we look forward to working with its highly respected and knowledgeable team to bring this outstanding project to fruition in a way that provides robust returns for all stakeholders.”
