Nova shareholder provides funding
PERTH (miningweekly.com) – ASX-listed Nova Minerals has secured up to A$6-million in funding from investor Collins St Asset Management, boosting the junior’s balance sheet.
The funding will consist of an initial A$2-million investment and additional loan of up to A$4-million, subject to the satisfaction of terms.
The initial funding will be provided by way of a prepayment facility, which is repayable within 120 days, or is convertible into Nova shares at a price of 7c a share.
In consideration for entering into the agreement, Collins St will receive 4.3-million shares and 18-million options in Nova, with an expiry date of two years and an exercise price of 7c each. The shares and options will be issued without shareholder approval.
Nova said on Thursday that the funds will be used to advance the company’s current drilling programmes.
“During 2020, Nova’s intent and strategy is to continue its systematic exploration approach to seek to significantly increase the current 2.5-million-ounce resource and simultaneously move the Korbel prospect to feasibility stage during the course of 2020 on the path to production,” said executive chairperson Avi Kimelman.
“Collins St Asset Management is already a significant shareholder of Nova Minerals, and we could not have asked for a better partner,” Kimelman added, noting that the funding solution was the least dilutive and the most beneficial for shareholders of all the facilities and direct equity offers made to the company.
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