Nova Minerals Ltd (ASX: NVA) share price has stepped well into the red during afternoon trade today and now trades at 11.8 cents each.
Nova Minerals shares are on the move after the company successfully completed a capital raise to fund its growth vision in Alaska.
Here’s what we know.
What did Nova Minerals announce?
Nova successfully raised $12 million to finance developments across its Estelle gold district in Alaska.
It raised the funds through the issue of 109 million ordinary shares at a price of 11 cents each.
In its results, the company outlined its financial development for the year, where it ended FY21 with just over $15 million in cash.
The $12 million raised today is therefore a welcome addition to provide working capital and additional cash for the Estelle project.
Now it will put the funds to work to accelerate the development and growth of this site, hoping to potentially unlock further gold resources.
Primarily it will fund drilling projects at the site to identify more gold targets.
Nova will also use some of the funds to complete a pre-feasibility study for the project, whilst beefing up infrastructure there to make things more efficient.
Today’s equity raise follows a previous $21 million that was drawn in for investors in November of last year to finance the Estelle project.
Investors certainly aren’t impressed by the news and have sold Nova minerals shares in droves this afternoon. Perhaps they are seeking more juice for the squeeze out of Estelle.
The Nova minerals share price now trains 19% lower from the market open, extending its loss over the past week to 16%.
Nova minerals share price snapshot
The Nova minerals share price has had an incredibly bumpy year to date and has posted a loss of 27% since January 1.
Despite this, it is 7% in the green over the past 12 months.
Nonetheless, this is not enough to get ahead of the S&P ASX 200 index (ASX: XJO)’s return of around 25% this last year.