Nova Minerals Limited (NASDAQ:NVA) announced on Thursday that it has completed the sale of 6.6 million shares in Snow Lake Resources Ltd, realizing gross proceeds of $6.73 million.
This divestment is part of the company’s strategy to optimize its asset portfolio and unlock shareholder value by advancing its gold and antimony assets within the Estelle Gold and Critical Minerals Project in Alaska.
A portion of the proceeds, $4 million, has been allocated to reduce the company’s Nebari loan, leaving $1.42 million of the facility outstanding.
This partial debt repayment significantly strengthens the company’s balance sheet, providing improved financial flexibility for the continued development of the Estelle Project.
The remaining proceeds will be directed towards advancing exploration and development at Estelle, mainly focusing on the RPM and antimony prospects, which are critical minerals with growing demand in defense and emerging industries.
Additionally, Nova Minerals’ financial position has been bolstered by the exercise of 109,237 warrants over recent months, bringing in an extra $0.79 million.
CEO Christopher Gerteisen expressed confidence in the company’s future, highlighting the positive start to the year and upcoming assay results from the 2024 exploration program.
He emphasized that the sale of Snow Lake shares and the warrant exercise have strengthened Nova’s financial position, positioning the company for significant growth in both gold and antimony.
The Estelle Gold and Critical Minerals Project is well positioned to capitalize on the current market demand for these minerals, and Nova plans to provide further updates in 2025.
Price Action: NVA shares traded higher by 4.84% to $14.50 premarket Thursday.
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