Nova Minerals Limited Announces Pricing of Public Offering

Rhea-AI Summary

Nova Minerals (Nasdaq: NVA, ASX: NVA), a gold and critical minerals exploration company, has announced the pricing of an underwritten public offering of 430,000 American Depository Shares (ADS) at $5.00 per ADS. This offering is expected to generate gross proceeds of $2,150,000 before deducting underwriting discounts and expenses. Nova has also granted underwriters a 45-day option to purchase up to an additional 43,000 ADSs to cover over-allotments.

The company plans to use the proceeds for resource and exploration field programs, including additional drilling and exploration, feasibility studies, and general working capital. The offering is set to close on September 25, 2024, subject to customary closing conditions. ThinkEquity is acting as the sole book-running manager for this offering.

Positive

• Successful pricing of public offering, potentially raising $2,150,000 in gross proceeds
• Funds to be used for resource exploration and feasibility studies, potentially advancing the Estelle Gold Project
• Option granted to underwriters for additional ADS purchase, potentially increasing total proceeds

Negative

• Potential dilution of existing shareholders' ownership due to new ADS issuance
• Offering price of $5.00 per ADS may be below current market price, potentially impacting stock valuation

Insights

Financial Analyst

Nova Minerals has priced its public offering of 430,000 American Depository Shares at $5.00 per ADS, aiming to raise $2,150,000 in gross proceeds. This capital raise is significant for the exploration-stage company, providing important funds for advancing its Estelle Gold Project in Alaska. The pricing at $5.00 per ADS and the modest size of the offering suggest a cautious approach, likely balancing the need for capital with minimizing dilution. The 45-day over-allotment option for an additional 43,000 ADSs provides flexibility to capture additional demand if present. Investors should note that exploration companies often require multiple rounds of funding and this offering may be part of a broader capital strategy. The use of proceeds for resource and exploration programs, drilling and feasibility studies indicates a focus on advancing the project towards potential production, which could be value-accretive if successful. However, the offering will likely result in some dilution for existing shareholders and the company's ability to utilize these funds effectively will be important for future value creation.

Mining Industry Expert

Nova Minerals' public offering is a strategic move to fund critical activities at its Estelle Gold Project. The focus on resource and exploration field programs, including additional drilling, suggests the company is at a important stage in delineating and expanding its gold resources. Feasibility studies, also mentioned as part of the use of proceeds, are a key step towards potentially moving the project towards development. This is a pivotal moment for Nova, as the results of these studies can significantly impact the project's perceived value and the company's future prospects. The Estelle Gold Project in Alaska is in a mining-friendly jurisdiction with potential for large-scale gold deposits. However, investors should be aware that exploration and development in Alaska can be challenging due to its remote location and harsh climate, which can affect operational costs and timelines. The success of this capital raise and subsequent exploration activities will be critical in determining Nova's ability to advance the project and potentially transition from an exploration-stage company to a developer or producer in the future.

Caufield, Australia, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Nova Minerals Limited (“Nova” and the “Company”) (Nasdaq NVA, NVAWW) (ASX: NVA), (OTC: NVAAF)(FSE: QM3)), a gold and critical minerals exploration stage company focused on advancing the Estelle Gold Project in Alaska, U.S.A., today announced the pricing of an underwritten public offering of 430,000 American Depository Shares (“ADS"), with an ADS-to-ordinary-share ratio of 1 to 60, at a price to the public of $5.00 per ADS, for gross proceeds of $2,150,000, before deducting underwriting discounts and offering expenses. In addition, Nova has granted the underwriters a 45-day option to purchase up to an additional 43,000 ADSs to cover over-allotments, if any.

The Company intends to use the proceeds for resource and exploration field programs, including additional drilling and exploration, feasibility studies, and general working capital.

The offering is expected to close on September 25, 2024, subject to satisfaction of customary closing conditions.

ThinkEquity is acting as sole book-running manager for the offering.

A registration statement on Form F-1 (File No. 333-282224) relating to the public offering was filed with the Securities and Exchange Commission (“SEC”) and became effective on September 23, 2024. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Nova Minerals Limited

Nova Minerals Limited is a Gold, Antimony and Critical Minerals exploration and development company focused on advancing the Estelle Project, comprised of 514 km² of State of Alaska mining claims, which contains multiple mining complexes across a 35 km long mineralized corridor of over 20 advanced Gold and Antimony prospects, including two already defined multi-million ounce resources, and several drill ready Antimony prospects with massive outcropping stibnite vein systems observed at surface. The 85% owned project is located 150 km northwest of Anchorage, Alaska, USA, in the prolific Tintina Gold Belt, a province which hosts a >220 million ounce (Moz) documented gold endowment and some of the world's largest gold mines and discoveries including, Barrick's Donlin Creek Gold Project and Kinross Gold Corporation's Fort Knox Gold Mine. The belt also hosts significant Antimony deposits and was a historical North American Antimony producer.

Forward Looking Statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Nova Minerals Limited’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Nova Minerals Limited undertakes no duty to update such information except as required under applicable law.

For Additional Information Please Contact:

Craig Bentley
Director of Finance & Compliance & Investor Relations
E: craig@novaminerals.com.au
M: +61 414 714 196

FAQ

What is the price per ADS in Nova Minerals' (NVA) public offering?

Nova Minerals (NVA) has priced its public offering at $5.00 per American Depository Share (ADS).

How many ADSs is Nova Minerals (NVA) offering in its public offering?

Nova Minerals (NVA) is offering 430,000 American Depository Shares (ADS) in its public offering.

What are the expected gross proceeds from Nova Minerals' (NVA) public offering?

Nova Minerals (NVA) expects to generate gross proceeds of $2,150,000 from its public offering before deducting underwriting discounts and expenses.

When is the expected closing date for Nova Minerals' (NVA) public offering?

The public offering of Nova Minerals (NVA) is expected to close on September 25, 2024, subject to customary closing conditions.

How does Nova Minerals (NVA) plan to use the proceeds from its public offering?

Nova Minerals (NVA) intends to use the proceeds for resource and exploration field programs, additional drilling and exploration, feasibility studies, and general working capital.