Avira Advances Puolalaki Gold Potential, Secures Tangadee Tenement, Plans Capital Raise
Avira Resources reports significant progress in its Swedish Puolalaki Project with ongoing farm-out talks and secures a new tenement in Western Australia’s Tangadee Project, while preparing a capital raise to fund exploration.
- Puolalaki Project reveals high-grade gold zones alongside nickel-copper mineralisation
- Ongoing discussions for a farm-out arrangement with a Swedish gold explorer
- Tangadee Project tenement granted, targeting sediment-hosted Cu-Zn and magmatic Cu-Ni deposits
- Proposed 20:1 share consolidation and options offer to raise up to $1 million
- Quarterly exploration expenditure of $42,000 with cash reserves of $200,000
Exploration Momentum at Puolalaki
Avira Resources Limited (ASX: AVW) has delivered a detailed quarterly update for the period ending 31 December 2024, highlighting continued exploration activity at its flagship Puolalaki Project in Sweden. The project, centred on a synorogenic gabbro intrusion known for nickel-copper-cobalt mineralisation, is now revealing promising high-grade gold mineralisation across two distinct zones within surrounding metasedimentary and metavolcanic rocks.
This gold mineralisation, accompanied by copper, tungsten, and molybdenum, was notably intersected at the bottom of drillhole PUO23005 in 2023, prompting Avira to pivot some focus towards the precious metals potential. The geological setting bears resemblance to the nearby Aitik copper mine, Europe’s largest open-cut copper operation, suggesting significant upside.
Farm-Out Talks Signal Strategic Partnership
In a strategic move, Avira and its partner Taiga Metals AB are in active discussions with a Swedish-based gold explorer to establish a farm-out arrangement for Puolalaki. While negotiations remain incomplete and no binding agreement has been reached, this potential partnership could accelerate exploration and de-risk the project by leveraging local expertise and capital.
Tangadee Project Secures Tenement Grant
On the Australian front, Avira secured the granting of Exploration Licence E52/4411 for its Tangadee Project in Western Australia’s Capricorn Orogen. Covering 441 square kilometres, this tenement straddles a structurally complex faulted contact between the Edmund and Collier Basins. The company is targeting sediment-hosted copper-zinc sulphide and magmatic copper-nickel sulphide deposits, with plans to drill test late-time electromagnetic conductors associated with major fault intersections.
Financial Position and Capital Strategy
During the quarter, Avira incurred $42,000 in exploration expenditure and ended with $200,000 in cash reserves. The company has proposed a 20:1 consolidation of capital and an options offer to raise approximately $1 million, subject to shareholder approval at a meeting scheduled for 12 February 2025. The options, priced at $0.001 each with a $0.015 exercise price, aim to provide the company with the necessary funding runway to advance its projects.
Avira’s management has expressed confidence in securing the capital raise, citing successful past fundraisings of similar scale. The company also continues to review additional opportunities across gold and base metals, signaling an active pipeline of potential growth assets.
Outlook
Avira’s dual focus on advancing the high-grade gold potential at Puolalaki alongside the newly granted Tangadee tenement positions the company at an intriguing juncture. The outcome of the farm-out negotiations and the forthcoming capital raise will be pivotal in determining the pace and scale of exploration activities in 2025.
Bottom Line?
Avira’s next moves on farm-out talks and capital raising will be critical to unlocking value from its promising exploration assets.
Questions in the middle?
- Will the farm-out arrangement for Puolalaki materialise, and on what terms?
- What are the planned exploration activities and timelines for the Tangadee Project post-tenement grant?
- How will the proposed capital raise and consolidation impact shareholder value and project funding?
