Enova Issues 428 Million Shares at $0.0035 in $1.5M Placement
Enova Mining has secured $1.5 million through a two-tranche placement to fund key project developments and exploration activities across its lithium and rare earth assets in Brazil and Australia.
- Placement raises $1.5 million via 428.57 million shares at $0.0035 each
- Funds allocated to CODA, Charley Creek, Lithium Valley projects and working capital
- Placement structured in two tranches, second tranche subject to shareholder approval
- Free attaching listed options offered to placement participants
- Focus on metallurgical test work, drilling, and exploration to advance project viability
Placement Completion and Funding Structure
Enova Mining Limited (ASX, ENV) has successfully completed a placement raising $1.5 million to support the development of its key projects, including the CODA and Charley Creek mineral sands projects, as well as ongoing exploration at its Lithium Valley tenements in Brazil. The placement involves issuing up to 428.57 million fully paid ordinary shares at a price of $0.0035 per share, structured in two tranches. The first tranche, raising approximately $517,000, settled on 29 January 2025, while the second tranche, amounting to nearly $983,000, awaits shareholder approval at an upcoming extraordinary general meeting (EGM) scheduled for the second half of March 2025.
Strategic Allocation of Funds
The capital raised will be strategically deployed across Enova's portfolio. A significant portion will fund metallurgical test work and engineering studies at the CODA project in Minas Gerais, Brazil, and the Charley Creek project in the Northern Territory, Australia. These activities aim to refine extraction processes for rare earth elements (REE), scandium, titanium, and heavy minerals, crucial for advancing these projects toward commercial viability.
Additionally, the company will continue field exploration and geochemical sampling at its Lithium Valley tenements, leveraging hyper-spectral imaging to identify promising pegmatite targets. Approximately $500,000 is earmarked for new project acquisitions and evaluations, reflecting Enova’s commitment to expanding its critical minerals footprint.
Project Highlights and Progress
The CODA project has emerged as a world-class opportunity, with 2024 drilling revealing extensive mineralisation over 10 square kilometres, starting from surface and extending to depths of 70 metres. The mineralisation consists of free-dig weathered saprolites rich in REEs, scandium, and titanium, situated near infrastructure-friendly locations in Brazil.
Meanwhile, Charley Creek remains a substantial alluvial mineral sands project with ongoing test work by IHC Brisbane to improve heavy mineral recovery processes. The company is focused on de-risking the variability in mineral samples to establish a robust processing flow sheet, with updates expected as work progresses.
Incentives and Broker Participation
Participants in the placement will receive one free listed ENVO option for every share subscribed, exercisable at $0.012 and expiring in December 2028, subject to shareholder approval. Lead broker GBA Capital Pty Ltd will also receive 10 million listed options under the same terms, aligning their interests with Enova’s future growth prospects.
Looking Ahead
With the placement funds secured, Enova is positioned to accelerate its technical work and exploration programs over the next six months. The company’s focus on advancing metallurgical test work and expanding exploration targets could unlock significant value, particularly if upcoming assay results from CODA Central and East meet expectations. The shareholder vote on the second tranche and options issuance will be a key event to watch, potentially unlocking the full funding package to support Enova’s ambitious development plans.
Bottom Line?
Enova’s successful placement sets the stage for critical technical milestones that could define its path to commercialisation.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured without delay?
- How will upcoming assay results from CODA Central and East influence project valuation?
- What new project opportunities might emerge from the $500,000 allocation for acquisitions?
