Why the Nova Minerals (ASX:NVA) share price is down 19% in a month

The company’s shares can’t seem to catch a break lately…

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plummeting gold share price

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The Nova Minerals Ltd (ASX: NVA) share price is sinking today despite no new news being released by the company.

At market close, the gold explorer’s shares are down a sizable 4.17% to 12 cents. This means that Nova Minerals shares have now lost around 19% of their value in a month.

Quick take on Nova Minerals

Founded in 1987, Nova Minerals is an Australian exploration company that is focused on gold deposits in Alaska.

The miner currently operates its flagship project, the Estelle Gold District along the Tintina Gold Belt, covering 324 square kilometres. The project is estimated to contain 4.7 million ounces of gold within just 2% of the project area.

In addition to the gold assets, Nova Minerals has an indirect interest in the Canadian Thompson Brothers Lithium Project. This is through a substantial stake in Snow Lake Resources, an aspiring lithium developer in Manitoba.

What’s happened over the month?

Since the middle of July, there have been a few releases from Nova Minerals in regards to its assets.

The first came on 19 July regarding significant drilling results at Korbel Main, within the Estelle Gold Project. Infill drilling returns impressive gold grades over wide intervals. Most notably, 2 intercepts indicated an average grade of 0.7g/t of gold over 308 meters and 0.4g/t of gold over 323 metres.

In the weeks following, Nova Minerals commissioned a preparation lab to process up to 7,500 samples per month. The onsite lab is expected to reduce costs and improve assay turnaround times.

However, just a few days ago, the company advised an update on its 74% owned Snow Lake Resources. It said that the lithium miner finalised its F-1 form to the Securities and Exchange Commission (SEC) to raise up to $23 million in an Initial Public Offering (IPO). The F-1 form is the registration required for foreign companies wanting to be listed on a United States stock exchange.

It appears that investors have been selling their shares for a profit today following a 14.29% gain the day earlier.

Nova Minerals share price summary

Over the past 12 months, Nova Minerals shares have more than doubled in value, up 120%. Year-to-date hasn’t been so positive, with the company share price down around 30%.

Based on valuation grounds, Nova Minerals presides a market capitalisation of roughly $184.9 million, with 1.6 billion shares on issue.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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