Advance Metals’ $1.52M Raise Sets Stage Amid Drilling Uncertainties at Myrtleford

Capital Raise Fuels Exploration Momentum

Advance Metals Limited (ASX: AVM) has successfully completed a $1.52 million capital raising to fully fund its upcoming diamond drilling programs at the Myrtleford Project in Victoria and the Yoquivo Silver Project in Mexico. The placement, heavily supported by cornerstone existing shareholders and new institutional investors, was conducted on a strictly invite-only basis and priced at $0.044 per share, representing a 15% discount to the last closing price but a 6% premium to the 15-day VWAP.

This fresh capital injection positions Advance Metals to aggressively pursue its exploration strategy, with drilling activities commencing immediately at Myrtleford. The company has committed to issuing 34.6 million new shares under its existing placement capacity, accompanied by unlisted options exercisable at $0.075, pending shareholder approval.

High-Impact Drilling at Myrtleford

The diamond drilling rig mobilised to the northeastern Victorian Goldfields aims to test the Happy Valley and Twist Creek Trends. Initial focus is on areas immediately above and below a previous high-grade intercept at Happy Valley, where hole HVD003 intersected 11.5 metres at an exceptional 160.4 grams per tonne gold. This phase seeks to refine the understanding of grade distribution and structural controls that govern mineralisation.

Subsequent drilling will explore the plunge and strike potential of the mineralised system, with core samples logged and dispatched progressively for assay throughout the quarter. The Myrtleford Project’s promising geology and recent high-grade results have generated considerable interest, making this drilling campaign a critical catalyst for the company’s near-term value proposition.

Supporting Growth in Mexico and Operational Flexibility

Alongside Myrtleford, funds will support confirmatory and extensional drilling at the Yoquivo Silver Project in Chihuahua, Mexico. This dual focus underscores Advance Metals’ strategic diversification across two geographies with significant exploration upside.

General working capital needs are also covered by the placement, ensuring operational flexibility as the company advances its exploration pipeline. The unbrokered raise, led internally, included a modest 6% fee on the portion facilitated by licensed brokers, reflecting a cost-efficient capital strategy.

Management Commentary and Market Implications

Managing Director Dr Adam Mckinnon expressed gratitude for shareholder support and highlighted the placement’s role in unlocking the “incredible near-term value potential” of Advance Metals’ projects. The strong demand for the placement shares signals confidence in the company’s exploration prospects and management’s execution capability.

Investors will be watching closely as assay results emerge from the Myrtleford drilling program, which could significantly influence the company’s valuation and market sentiment. The combination of high-grade intercepts and strategic capital deployment sets a promising stage for Advance Metals in 2025.