Adelong Gold Raises $1.17M to Boost NSW Gold and Brazilian Lithium Projects

Capital Raise Details and Market Context

Adelong Gold Limited (ASX: ADG) has successfully completed a $1.173 million capital raise through a single-tranche placement priced at $0.0042 per share. The placement includes a 1:2 free attaching option under the existing listed option class (ASX: ADGOA), exercisable at $0.008 with an expiry date in May 2029, subject to shareholder approval. This capital injection comes at a notable discount of approximately 23.7% to the last traded price, reflecting a strategic move to secure funding while balancing shareholder value.

The placement issued nearly 280 million new shares, with approximately 140 million options to be issued pending approval. Chairman Mena Habib’s participation with a $25,000 investment underscores management’s alignment with shareholders and confidence in the company’s trajectory.

Strategic Use of Funds

The funds raised will be directed primarily towards accelerating exploration drilling at the Adelong Gold Project in New South Wales, targeting resource expansion at key deposits including Challenger, Currajong, and Caledonian. This drilling campaign aims to build on the existing JORC 2012 resource base of 188,000 ounces of gold, with recent additions such as the Perkins West deposit enhancing the project’s potential.

In parallel, Adelong plans to advance its farm-in agreement with Great Divide Mining (ASX: GDM), moving the Adelong Gold Project closer to first gold production. The company is also allocating capital to its Brazilian lithium exploration portfolio, which includes the Santa Rita do Aracuai Lithium Project in Minas Gerais and additional licenses in Paraiba Province. These projects position Adelong within the globally significant 'Lithium Valley,' a region gaining attention for hard-rock spodumene deposits.

Investor Confidence and Market Implications

Managing Director Ian Holland highlighted strong investor support for the raise, reflecting confidence in Adelong’s dual strategy of gold production and critical minerals exploration. The inclusion of free attaching options provides an incentive for investors to participate in the company’s longer-term upside potential, while the discount pricing facilitates immediate capital inflow.

GBA Capital acted as lead manager, ensuring the placement was efficiently executed under ASX Listing Rules 7.1 and 7.1A. The upcoming extraordinary general meeting will be a key event for shareholders to approve the option issuance, which will determine the full impact of the raise on the company’s capital structure.

Outlook and Next Steps

With the capital secured, Adelong is positioned to accelerate exploration and development activities that could materially enhance its resource base and operational readiness. The company’s expansion into lithium exploration aligns with broader market trends favoring critical minerals, potentially diversifying its asset base and revenue streams.

Investors will be watching closely how the exploration results and project milestones unfold, particularly the advancement of the farm-in agreement and progress in Brazil. The success of these initiatives will be pivotal in transitioning Adelong from explorer to producer, with implications for its valuation and market positioning.