Nova Minerals Limited (OTC: NVAAF/FSE:QM3/ASX:NVA) has made a strategic investment in Torian Resources Limited (ASX: TNR) and its 400 sq. km tenement package in the prolific Kalgoorlie Leonora Greenstone Gold Belt regions in Western Australia.
Nova will invest A$413,325 as a convertible note, with an option for conversion to shares in Torian, representing a 19.9% interest in Torian.
NOVA CEO, Chris Gerteisen, said that given market conditions and the opportunity it presented, Nova has elected to pursue the Strategic Note and will, in the coming months, continue to act with an eye to opportunities which the Board believes will add significant value for Nova while still retaining its existing focus.
As part of this strategic investment, Nova Executive Director Louie Simens will be appointed to the board of Torian as Non-Executive Chairman, effective immediately.
“Furthermore, this will now provide Torian the benefit of Nova’s significant technical expertise and know how, to unlock the significant potential from Torian’s over 400km2 tenement package in the prolific Kalgoorlie Leonora Greenstone Gold Belt regions in Western Australia,” Mr Gerteisen said.
“Nova remains first and foremost fully committed to the Estelle Gold Project and focused on increasing the size and potential to seek to move the resource category from Inferred to Measured & Indicated, thereby expediting the project to feasibility studies on the path to production,” Mr Gerteisen said.
“With the Estelle Gold Camp remaining our core focus and will recommence our exploration efforts as soon as the virus subsides or health officials’ advises it is safe to return.
“In the interim, we couldn’t avoid the opportunity presented at this time with Torian’s tenure along the prolific Zuleika Shear, outside Kalgoorlie.
“We believe this transaction represents a compelling value equation for both sets of shareholders and synergies.
“Nova will offer its expertise in the exploration and development of precious metals projects to assist in increasing resources as we have done at the 2.5Moz Estelle Gold Camp with extremely low discovery costs.
“Nova brings a tremendous depth of experience, which will enable Torian for further discoveries as they commence their 2020 field activities to expand this uniquely large underexplored system.
“The company has implemented a work from home policy for its corporate office employees (for which the Company has the appropriate IT support).
“Out of an abundance of caution and in accordance with State of Alaska directives, Ruen Drilling, the contractor engaged to complete the resource development drilling program at Estelle Gold Project, has made a decision to defer the current drilling programme at Estelle until the virus subsides or health officials’ advise it is safe to return.”