Adavale Secures $2.65M to Boost Parkes Gold Drilling Ambitions
Adavale Resources has raised $2.65 million to accelerate drilling at its Parkes Gold Project, aiming to expand the resource at the London Victoria Gold Mine and advance multiple exploration targets.
- Placement raised $2.5 million from sophisticated investors plus $152,000 from directors
- Funds to support 10-hole, 2,200m RC drilling program targeting resource extensions
- Focus on increasing JORC mineral resource of 115,000 ounces gold at London Victoria
- New options offered to investors, exercisable at $0.035, pending shareholder approval
- Exploration to continue at Parkvale South, Ashes, and other prospects within Parkes Project
Funding Boost for Parkes Gold Project
Adavale Resources Limited (ASX, ADD) has successfully completed a $2.65 million placement to accelerate exploration and drilling activities at its flagship Parkes Gold Project in New South Wales. The capital raise, comprising $2.5 million from new and existing sophisticated investors and an additional $152,000 from company directors, underscores strong shareholder confidence in the project’s potential.
The funds will primarily support a recently commenced reverse circulation (RC) drilling program at the London Victoria Gold Mine, a key asset within the Parkes portfolio. This 10-hole, 2,200-metre drilling campaign aims to identify shallow extensions to the current JORC-compliant mineral resource estimate of 115,000 ounces of gold, which includes a higher-grade component of 107,000 ounces at 1.06 grams per tonne.
Targeting Resource Growth and High-Grade Zones
The London Victoria Mine has historical production of approximately 155,000 ounces at around 2 grams per tonne, and the current drilling is designed to test for additional mineralisation, including the presence of high-grade perpendicular dilation veins reminiscent of the nearby Koh-I-Noor mine, which historically yielded gold grades up to 43.8 grams per tonne. Success here could materially enhance the project's resource base and economic prospects.
Beyond London Victoria, the placement proceeds will also fund exploration follow-ups at other promising prospects within the Parkes Project, including Parkvale South and Ashes, as well as reconnaissance work at No Mistake, The Dish, and Front Gate. These efforts reflect Adavale’s strategy to leverage the highly prospective Macquarie Arc geology, a Tier-1 mining jurisdiction known for hosting world-class gold and copper deposits.
Investor Incentives and Next Steps
As part of the placement, investors will receive one free option for every two new shares subscribed, exercisable at $0.035 each with an expiry in mid-2028, subject to shareholder approval. This incentive aligns investor interests with the company’s growth trajectory and provides potential upside as exploration results unfold.
Settlement of the placement shares is expected around mid-July 2025, with the company preparing to seek shareholder approval for the directors’ participation and the option offer. Meanwhile, the market will be watching closely for assay results from the drilling program, which could significantly influence Adavale’s valuation and development plans.
Strategic Positioning in a Tier-1 Mining Belt
Adavale’s Parkes Gold Project is strategically located adjacent to major operations like Northparkes and Cadia Ridgeway, positioning the company well within a prolific mineral belt. The recent capital raise and accelerated drilling program signal Adavale’s commitment to unlocking value in this highly prospective region, potentially setting the stage for a transformative phase in its exploration journey.
Bottom Line?
With fresh capital in hand, Adavale is poised to deliver critical drilling results that could reshape its resource profile and market standing.
Questions in the middle?
- Will the drilling at London Victoria confirm extensions to the existing gold resource?
- How will shareholders respond to the proposed options and directors’ participation in the placement?
- What impact will exploration success at other Parkes prospects have on Adavale’s growth strategy?
