A New York hedge fund has raised concerns about Nova Minerals’ ability to meet its deadline for a key mine in Alaska. Spruce Point Capital released a report questioning the credentials of a key adviser. Nova Minerals briefly halted trading on Monday after the 61-page report warned the shares could plummet due to challenges in developing its Estelle gold-antimony project, citing infrastructure, community opposition, and harsh weather. Nova Minerals, among the companies benefiting from the White House’s push for domestic critical mineral production, received a $US43.4 million award from the Trump administration. The company earmarked late 2026 or early 2027 for production at its Stibium antimony-gold deposit.
Spruce Point estimates Nova’s share price has a near-term downside risk of 45 to 60 per cent, potentially reaching 100 per cent if it loses the $US43.5 million Department of War award. Nova Minerals responded to the report, defending the credibility of its consulting geologist, Vannu Khounphakdy, confirming they possess his diploma from Krivoy Rog National University. Nova dismissed other allegations as historical, selective, or non-material, noting that Spruce Point stands to gain if Nova’s share price declines. Nova Minerals is an Australian mining company focused on exploring and developing gold and critical mineral deposits. The company’s primary project is the Estelle Gold Project in Alaska.
Nova Minerals shares climbed 2 per cent to 76.5¢ after trading resumed on Monday, extending their 12-month increase to 125 per cent. Spruce Capital expressed concerns about Khounphakdy’s credentials, but Nova stated that Spruce Point did not contact the consultant or company to verify the claims before publication. Nova advised shareholders and potential investors to exercise caution and rely on official ASX and SEC disclosures. Wall Street hedge funds have increased their scrutiny of ASX-listed companies, particularly in the mining and defence sectors.
Spruce Point’s chief investment officer, Ben Axler, noted attractive short opportunities due to high valuations and enthusiasm for resource stocks. Recently, uranium explorer NexGen Energy was targeted by Culper Research, while Grizzly Research caused Electro Optic Systems to halt trading. Spruce Point has previously targeted ASX-listed critical minerals stocks, disclosing a short position in IperionX in November. Short sellers now hold nearly 8 per cent of IperionX shares, up from 5.9 per cent in November.
