Enova’s $1.5M Placement Hinges on Shareholder Nod Amid Project Development
Enova Mining has completed a $1.5 million placement to fund key development and exploration activities across its CODA, Charley Creek, and Lithium Valley projects. The capital injection aims to accelerate metallurgical testing and engineering work critical to unlocking the value of these rare earth and critical mineral assets.
- Placement raised $1.5 million via 428.57 million shares at $0.0035 each
- Funds allocated to metallurgical test work, exploration, and working capital
- Focus on advancing CODA (Brazil) and Charley Creek (Australia) projects
- Placement includes attaching listed options exercisable at $0.012 by 2028
- Second tranche subject to shareholder approval at upcoming EGM
Placement Details and Funding Allocation
Enova Mining Limited (ASX: ENV) has successfully completed a placement raising $1.5 million before costs, issuing up to 428.57 million fully paid ordinary shares at $0.0035 each. The placement was supported by lead broker GBA Capital Pty. Ltd. and structured in two tranches, with the first tranche of approximately $862,000 settled immediately and the second tranche of $638,000 pending shareholder approval at an extraordinary general meeting (EGM) expected in March 2025.
The funds raised will be strategically deployed across Enova’s portfolio, with a strong emphasis on metallurgical test work and engineering to advance the CODA project in Minas Gerais, Brazil, and the Charley Creek project in the Northern Territory, Australia. Additional capital will support ongoing exploration at the Lithium Valley tenements in Brazil and general working capital requirements.
Advancing CODA and Charley Creek Projects
The CODA project has emerged as a world-class opportunity, with 2024 drilling revealing extensive mineralisation over 10 square kilometres, including high-grade rare earth elements (REE), scandium, and titanium in weathered saprolite zones. Enova plans to continue metallurgical testing to refine extraction methods and develop a process flow design within six months, aiming to move the project closer to commercial viability.
Similarly, Charley Creek remains a significant alluvial mineral sands project with a large footprint and high-value heavy rare earth and industrial minerals. Extensive test work conducted by IHC Brisbane throughout 2024 has focused on overcoming mineral variability challenges to improve heavy mineral recovery. The new funding will support further laboratory testing and an update to the project’s scoping study.
Exploration and New Opportunities
Enova’s Lithium Valley tenements benefit from recent hyper-spectral imaging that has identified promising pegmatite targets. Field teams are actively assessing these targets for lithium, REEs, and other economic minerals, with funds allocated for geochemical sampling and technical test work. Additionally, approximately $500,000 of the placement proceeds will be reserved for evaluating new project opportunities, reflecting Enova’s strategic intent to build a diversified portfolio of critical mineral assets.
Shareholder Engagement and Market Implications
The placement includes an attaching listed option for every share subscribed, exercisable at $0.012 until December 2028, subject to shareholder approval. GBA Capital will also receive options as part of their brokerage arrangement. The company’s next key milestone will be the EGM to approve the second tranche and options issuance, which will be closely watched by investors seeking clarity on Enova’s capital structure and project funding trajectory.
CEO Eric Vesel emphasised the importance of this capital raise in enabling Enova to progress its flagship projects and explore new opportunities, underscoring the company’s commitment to delivering critical minerals for a sustainable future.
Bottom Line?
Enova’s $1.5 million raise sets the stage for critical metallurgical milestones and shareholder decisions that will shape its rare earths future.
Questions in the middle?
- Will shareholder approval for the second tranche and options be secured at the upcoming EGM?
- How will metallurgical test results influence the timeline and economics of the CODA and Charley Creek projects?
- What new project opportunities might Enova pursue with the allocated $500,000 budget?
