- Nova Minerals has announced a share purchase plan oversubscribed by roughly $2.2 million
- The purchase plan was initially aimed at raising $1 million, but the company received subscriptions for $3.2 million worth of shares
- As a result, Nova announced today that it would need to scale back the applications of the share purchase plan by roughly 20 per cent
- The money raised from the share placement will fund exploration at Nova’s Estelle Gold Project in Alaska, U.S.A
Nova Minerals shares have continued to rise today after the company received subscriptions for a share purchase plan worth triple the intended amount.
In early July this year, the gold explorer announced a share purchase plan in which eligible shareholders could subscribe for up to $15,000 worth of new shares at two cent a piece. In plan was intended to raise up to $1 million.
So, the company was put in a strong financial position when it received subscriptions for $3.2 million worth of shares, according to Managing Director Avi Kimelman.
However, Nova announced today that it would need to scale back the applications of the share purchase plan by roughly 20 per cent due to the vast oversubscription.
The money raised from the share placement was planned to fund exploration at Nova’s Estelle Gold Project in Alaska, U.S.A.
Avi said the additional funds raised in the purchase plan now put Nova in a strong position to continue its “aggressive” growth plans.
“The groundswell of support from shareholders for the SPP allows the Company to aggressively pursue its exciting exploration endeavours in Alaska,” Avi said.
On top of this, he said, the company is also in a good position to develop its Thompson Bros lithium opportunity through its Snow Lake Resources spin-off.
The share purchase plan was part of a capital raising plan for Nova, which also included the share placement of 25 million new shares to raise $500,000. This brings the total capital raised by the company to $3.7 million.
Share subscribed for under the purchase plan are expected to be allotted to shareholders in early August this year.
Shares in Nova have continued to rise since the announcement of the oversubscription, up 3.33 per cent today to trade for 3.1 cents each. Before the announcement, Nova shares traded for 2.9 cents each.