Nova Minerals Share Price Up Over 6% (ASX:NVA)
Nova Minerals Ltd [ASX:NVA] shares are up 6.52% today at time of writing.
Nova Minerals is a minerals explorer focused on gold and lithium projects. Their portfolio includes the Estelle Copper Gold project in Alaska, Officer Hill gold project in Australia and Thompson Bros Lithium property in Canada.
The company used to be known as Quantum Resources.
What did Nova Minerals announce today?
The company revealed today that they now hold an 85% ownership in the Estelle Gold Camp. According to the announcement, Nova went beyond ongoing expenditure requirements established on their 20 November 2017 agreement.
According to the company, this improves Nova’s position to fast track the development.
Nova’s Managing Director Avi Kimelman said in a statement:
‘Completing the move to 85% in a quick time considering the resource achieved demonstrates Nova’s intent, ambition, strategy and its absolute confidence to fully explore and ultimately develop the Estelle Gold Camp.’
Kimelman also took advantage of the announcement to comment on the company’s financial situation. As he continued:
‘At the end of quarter we had circa $3.9m AUD and have completed our fully owned camp. This includes a commercial kitchen, laundry and washing facilities, sleeping quarters and social area. It is no secret that if we are to utilise both diamond rigs and our RC rig to complete the targeted 20,000 metre plus program, the current cash position is insufficient. We have had many proposed mandates and bridging financing facilities presented to us over the past weeks, of which a number are quite attractive.
‘However, we note and are conscious of the potential for the NVAO options to be converted and if all were to convert it would yield the Company in excess of AUD$13 million.’
What could happen next?
The company’s main objective for this year is to increase their 2.5 Moz resource, and there couldn’t be a better time to drill for gold.
So far, gold prices have returned 12% year to date in US dollars.
One way to take advantage of gold’s surge is to invest in gold explorers. Another is to invest directly in gold.
If you are interested in buying gold, check out Shae Russell’s ‘Best Way to Buy, Sell and Store Gold’.