- Nova Minerals (NVA) is set to sell a chunk of its investment in NASDAQ-listed, Snow Lake Resources for A$24 million
- Through an underwritten secondary offering, NVA has agreed to the sale of 3 million shares at A$8 each
- This equates to 31 per cent of its holdings, leaving it with 37 per cent of Snow Lakes total outstanding common shares upon closing of the deal
- Nova maintained it is confident and committed to Snow Lake and as such, agreed to extend the underwriter lock-up on its remaining shares until March 21
- Company shares remain suspended pending a further announcement and last traded at 95 cents on April 4
Nova Minerals (NVA) is set to sell a chunk of its investment in NASDAQ-listed, Snow Lake Resources for A$24 million.
Snow Lake is a lithium explorer with the aim of becoming a leading North American lithium supplier.
It is currently working to advance its Thompson Brothers project.
Today, Nova told investors it entered into an agreement for the sale of 3 million shares of Snow Lake priced at US$6 (A$8) each in an underwritten secondary offering.
This equates to 31 per cent of its holdings in the company and equals $24 million before fees and expenses.
The sale is expected to close on April 12 and following this, NVA will hold 6.6 million shares, or 37 per cent of the total outstanding common shares of Snow Lake.
Nova said it remains confident and committed to Snow Lake and as such has agreed to extend the underwriter lock-up on its remaining shares until March 21, 2023.
With a “laser focus” on drilling and resource studies at its Estelle Gold project in North America, CEO Christopher Gerteisen said the offering provides an opportunity to fund upcoming financial commitments with zero dilution to Nova shareholders.
“Snow Lake has been a remarkable investment for us, returning approximately 2500 per cent in just under five years,” he said.
“We are very pleased by Snow Lake’s progress and performance, and it appears that the market is recognising the strides that they have made in advancing the Thompson Brothers lithium project.”
“Nova sees the next 12 months as being an exciting and pivotal time for Snow Lake, as it delivers on its key value creating milestones of advancing and expanding its resource and completing its economic studies”.
Nova shares remain suspended, pending a further announcement regarding the finalisation of the Snow Lake Block Trade and use of funds, which it expects to make on or before Monday April 11.
Shares last traded at 95 cents on April 4.