Nova Minerals (ASX:NVA,NASDAQ:NVA) announced on Wednesday (January 8) that it has reached an agreement with Nebari Gold Fund 1 to eliminate its existing convertible debt facility.
The full outstanding balance of US$5.42 million will be converted into ordinary shares, priced at AU$0.25 each.
The deal follows Nova’s sale of its non-core investment in Snow Lake Resources (NASDAQ:LITM) for AU$10.85 million.
According to Nova, Nebari’s intent is to continue in its partner role, now as a supportive shareholder, as Nova works to unlock future value at the Alaska-based Estelle gold and critical minerals project.
“This conversion is a serious vote of confidence by Nebari, which brings us a step closer to realizing our vision which is to concurrently develop Estelle into a tier one gold asset and to help secure a US domestic supply chain for the strategically important mineral antimony,” said Nova CEO Christopher Gerteisen in a release.
After the conversion, Nova will retain all the proceeds of the Snow Lake sale for the development of Estelle. The company said that after the exercise of NASDAQ warrants over the last few ays its cash position stands at AU$16 million.
‘Establishing a domestic source of the critical mineral antimony is more important than ever, and we stand ready to responsibly produce critical resources here at home and help strengthen America’s national and economic security,’ Nova said.
Gerteisen added that the company will continue to work with Nebari in the operational phase of Estelle.
The conversion is set to happen on January 13.
West Red Lake, Lion One working with Nebari
Nebari has also been involved in other transactions over the past few weeks.
Canadian company West Red Lake Gold Mines (TSXV:WRLG,OTCQB:WRLGF) announced on January 2 that it has entered into a completed credit agreement with Nebari to borrow up to US$35 million.
The companies first entered into a non-binding term sheet in October 2024.
In addition, gold producer Lion One Metals (TSXV:LIO,OTCQX:LOMLF) entered into an agreement with Nebari to amend certain terms and draw down a further US$4 million of its senior secured financing facility.
The agreement was announced on December 2, 2024, along with the company’s updated financial results.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.