Enova Issues 428M Shares at $0.0035 in $1.5M Placement for Critical Minerals

Placement Details and Structure

Enova Mining Limited (ASX: ENV) has successfully secured firm commitments to raise $1.5 million through a placement of 428.57 million fully paid ordinary shares priced at $0.0035 each. The raise is structured in two tranches, with the first tranche of approximately $517,000 settling immediately and the second tranche of nearly $983,000 contingent on shareholder approval at an extraordinary general meeting expected in March 2025.

Alongside the shares, investors will receive one free listed option for every share subscribed, exercisable at $0.012 and expiring in December 2028. The lead broker, GBA Capital Pty Ltd, will also receive 10 million options under the same terms, subject to shareholder approval.

Strategic Allocation of Funds

The capital raised will be strategically deployed across Enova’s key projects. 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 and advance project concepts toward commercial viability.

Exploration efforts will continue at the Lithium Valley tenements in Brazil, where hyper-spectral imaging has identified promising pegmatite targets. Field teams are actively conducting geochemical sampling and technical assessments to uncover lithium and rare earth mineralisation.

Additionally, approximately $500,000 is earmarked for new project opportunities, reflecting Enova’s intent to expand its portfolio of critical mineral assets. The balance will cover administration and working capital needs for the next 12 months.

Project Highlights and Outlook

The CODA project has emerged as a world-class opportunity, with 2024 drilling revealing extensive rare earth element mineralisation over a 10 square kilometre area starting from surface. The mineralisation includes high-grade zones of rare earths, scandium, and titanium within weathered saprolite, accessible via low-cost drilling methods.

Charley Creek remains a substantial alluvial mineral sands project with ongoing test work focused on improving heavy mineral recovery processes. The collaboration with IHC Brisbane aims to de-risk variability in mineral samples and establish a robust process flow sheet, with updates to the scoping study anticipated.

Enova’s approach combines technical rigor with strategic exploration, leveraging recent advances in remote sensing and metallurgical testing to accelerate project development. The company’s management expects to complete critical technical work within six months, positioning these assets for potential commercial advancement.

Next Steps and Market Implications

Settlement of the first tranche of shares is scheduled for 29 January 2025, with the shareholder meeting to approve the second tranche and options planned for the second half of March. The successful completion of this placement underscores investor confidence in Enova’s growth strategy and the potential of its critical minerals projects.

Market watchers will be keen to monitor assay results from CODA Central and East prospects, as well as progress on process engineering at Charley Creek. These developments will be pivotal in validating Enova’s resource base and advancing towards feasibility milestones.