How Will Adavale’s $0.588M Placement Accelerate Parkes Exploration?

Strategic Capital Injection

Adavale Resources Limited (ASX, ADD) has successfully secured commitments to raise up to $0.588 million through a placement of approximately 28 million new shares priced at 2.1 cents each. This capital injection comes from a strategic investor group that includes follow-on funding from a recent cornerstone investor, signaling continued confidence in Adavale’s exploration prospects.

Notably, the new investors have agreed to voluntarily escrow their shares for three months, underscoring their long-term commitment to the company’s growth trajectory. The placement will be completed in a single tranche, utilising the company’s existing placement capacity under ASX Listing Rules.

Advancing the Parkes Gold and Copper Project

The proceeds from the placement will be directed towards advancing exploration activities at the Parkes Gold and Copper Project in New South Wales. This includes funding an extensive drilling program at the London Victoria Gold Mine, where a recent 10-hole reverse circulation (RC) drilling campaign has been completed, with samples now submitted for assay.

The drilling program targets shallow extensions to known mineralisation, aiming to increase both the size and confidence of the existing JORC Mineral Resource Estimate (MRE) of 115,000 ounces of gold. The current resource includes a higher-grade portion estimated at 3.14 million tonnes grading 1.06 grams per tonne gold for 107,000 ounces.

Incentivising Investors with Options

As part of the placement, Adavale will offer one free option for every two new shares subscribed. These options will be exercisable at 3.5 cents each and expire on 30 June 2028. However, the issuance of these options is subject to shareholder approval at an upcoming General Meeting and compliance with ASX requirements.

This incentive structure is designed to reward early investors and potentially provide additional capital if the options are exercised, further supporting the company’s exploration ambitions.

Broader Exploration and Corporate Use

Beyond the London Victoria drilling, funds will also support follow-up geochemical and geophysical surveys at other prospects within the Parkes Project, such as Parkvale South, Ashes, and Myalls. Additionally, reconnaissance work will continue on other tenements including No Mistake, The Dish, and Front Gate.

General working capital and corporate overheads will also be covered, ensuring the company maintains operational momentum as it advances its portfolio.

Outlook and Market Position

Adavale’s Parkes Project is strategically located within the Macquarie Arc of the Lachlan Fold Belt, a Tier-1 mining jurisdiction known for hosting world-class gold and copper mines such as Cadia Ridgeway and Northparkes. The company’s recent maiden JORC resource and ongoing drilling programs position it well to unlock further value from this highly prospective region.

Executive Chairman and CEO Allan Ritchie expressed enthusiasm about the new funding and exploration progress, welcoming new shareholders and highlighting the potential to grow the resource base at London Victoria.