Advance Metals Raises $2.55 Million via 51M Shares at $0.05 to Fund Drilling

Capital Raising to Accelerate Exploration

Advance Metals Limited (ASX: AVM) has announced a successful capital raising of $2.55 million through a single-tranche placement to institutional and sophisticated investors. The funds will underpin a follow-up exploration program at the company’s high-grade Myrtleford Project in Victoria, Australia, as well as support the maiden drilling campaign at the Yoquivo Silver-Gold Project in Chihuahua, Mexico.

The placement was priced at $0.05 per share, representing a modest 10.7% discount to the last closing price and a 2.5% discount to the 15-day volume weighted average price. A total of 51 million new shares will be issued under ASX Listing Rules 7.1 and 7.1A, accompanied by one-for-three attaching options exercisable at $0.05, pending shareholder approval.

Backing from Existing and New Investors

Evolution Capital acted as lead manager for the placement, securing strong support from key existing shareholders alongside new institutional investors. The manager will receive a fee of up to 6% on funds raised and is entitled to 3.5 million options, also subject to shareholder approval. Notably, Advance Metals’ Managing Director Dr Adam McKinnon has committed to subscribing for $25,000 worth of shares, signaling confidence in the company’s near-term prospects.

Exploration Plans and Recent Results

The capital injection follows encouraging assay results from Advance Metals’ maiden drilling program at the Happy Valley Prospect within the Myrtleford Project, including a standout intersection of 7.5 metres grading 47.9 grams per tonne gold. Additional assay results from recent holes at Happy Valley and the Twist Creek area are pending, which could further validate the project’s high-grade potential.

Funds will be allocated to diamond drilling to expand on these promising results, as well as broader regional exploration and target generation across the Myrtleford and Beaufort Projects. Concurrently, the company is poised to commence its first-ever drilling program at the Yoquivo Silver-Gold Project in Mexico, aiming to unlock value in this underexplored jurisdiction.

Strategic Implications

This capital raising positions Advance Metals to advance multiple high-impact exploration fronts simultaneously, a strategy that could accelerate the discovery timeline and enhance shareholder value. The company’s dual focus on proven Victorian gold targets and emerging Mexican silver-gold assets reflects a balanced approach to growth and risk diversification.

While the placement terms are favorable and the backing robust, final shareholder approval remains pending for the attaching options and the Managing Director’s participation. Investors will be watching closely for assay updates and the outcomes of upcoming shareholder meetings to gauge the momentum of these exploration campaigns.