Adelong Gold Secures $1.57M to Accelerate Gold and Lithium Exploration

Capital Raising Extension Signals Investor Confidence

Adelong Gold Limited (ASX: ADG) has announced a successful extension to its recent capital raising, securing an additional $400,000 from sophisticated and professional investors. This follows the initial $1.173 million raise announced earlier in February 2025, bringing the total funds raised to $1.573 million. The placement involves issuing over 95 million ordinary shares at a modest price of $0.0042 each, accompanied by free-attaching options exercisable at $0.008, subject to shareholder approval.

Strategic Deployment of Funds

The fresh capital injection is earmarked to accelerate exploration drilling at the Adelong Gold Project in southern New South Wales, targeting key deposits such as Challenger, Currajong, and Caledonian. Additionally, the funds will support project development activities under the farm-in agreement with Great Divide Mining (ASX: GDM), which recently acquired a 15% stake in the project operator and aims to increase its interest to 51% upon first gold production.

Beyond Australia, Adelong Gold plans to advance its lithium exploration initiatives in Brazil’s prolific 'Lithium Valley' of Minas Gerais and the Paraiba Province. These regions are renowned for their hard-rock lithium spodumene deposits, positioning Adelong to capitalize on the growing demand for lithium in battery technologies.

Investor Engagement and Marketing Efforts

In a complementary move, Adelong Gold has agreed to issue 150 million options to Bullseye Analytics Pte Ltd as part of a digital marketing services agreement. This initiative aims to bolster investor awareness and engagement over the next two years, leveraging targeted digital campaigns to enhance the company’s profile amid its transition towards production.

Outlook and Operational Focus

Managing Director Ian Holland expressed optimism about the strong investor demand and the company’s strengthened financial position. The capital raising is expected to underpin a rapid restart of the modern Adelong Gold Plant, constructed in 2016/17, with a goal to resume production within 12 months. Concurrently, exploration and feasibility studies will seek to expand the resource base beyond the current JORC estimate of approximately 1.82 million ounces of gold across the project.

The partnership with Great Divide Mining is pivotal, combining operational expertise with Adelong’s resource base to fast-track production and establish the Adelong Gold Project as a regional hub. Meanwhile, the lithium exploration programs in Brazil offer a strategic diversification avenue, tapping into one of the world’s most significant lithium provinces.

Next Steps and Shareholder Approval

The additional shares and options issued under the placement are subject to shareholder approval under ASX Listing Rule 7.1, with a general meeting expected in late March 2025. Investors will be watching closely to see the outcome, as approval will unlock the full benefit of the capital raising and marketing arrangements.