Adelong Gold Raises $750K from Sarama Share Sale to Fund Exploration
Adelong Gold has bolstered its cash reserves by $750,000 through the sale of Sarama Resources shares, positioning itself to advance high-grade gold exploration at its Apollo and Lauriston projects in Victoria.
- Sale of 25 million Sarama Resources shares generates $750,000
- Cash balance now approximately $3.84 million post-sale
- Funds to accelerate exploration at Apollo and Lauriston gold projects
- Pending assay results from recent Apollo drilling to guide next steps
- Retains Sarama options and maintains diversified portfolio including lithium assets
Adelong Gold Boosts Financial Flexibility
Adelong Gold Limited (ASX – ADG) has taken a decisive step to strengthen its financial position by selling 25 million shares in Sarama Resources Ltd for $750,000. This move adds to recent capital inflows, including $455,000 from a non-core property sale and approximately $3 million raised from investors during the June quarter, bringing the company's cash holdings to an estimated $3.84 million. This robust cash position provides a solid foundation for the company’s next phase of exploration activities.
Focused Investment in Victorian Gold Projects
The freshly enhanced cash reserves are earmarked to accelerate exploration at Adelong Gold’s Apollo and Lauriston projects in Victoria, both of which are situated in prolific gold corridors. The Apollo project recently saw diamond drilling targeting the high-grade Dig Fault Zone, with assays pending. Historical drilling at Apollo has revealed impressive intercepts, including a 39.5-metre section grading 7.25 grams per tonne gold, underscoring the project's potential.
Meanwhile, the Lauriston project, located near Agnico Eagle’s renowned Fosterville Mine, hosts the high-grade Comet discovery. Previous drilling has returned remarkable results such as 8 metres at 104 grams per tonne gold, including a 2-metre section at 413 grams per tonne. Recent sampling also highlighted significant antimony mineralisation, adding a multi-commodity dimension to the project’s appeal.
Strategic Portfolio and Future Outlook
Adelong Gold retains 7.5 million options in Sarama Resources, maintaining exposure to potential upside while focusing on its core exploration assets. Beyond Victoria, the company is advancing its flagship Adelong Goldfield Project in New South Wales through a farm-in agreement with Great Divide Mining, which recently commenced gold production at the Challenger Gold Mine.
Additionally, Adelong’s lithium portfolio in Brazil offers strategic diversification aligned with the global energy transition. Early exploration has identified promising lithium targets, complementing the company’s gold-focused growth strategy.
With a diversified asset base and a strengthened cash position, Adelong Gold is well-positioned to capitalize on near-term exploration opportunities in a tightening high-grade gold market.
Bottom Line?
Adelong Gold’s strengthened cash reserves set the stage for potentially transformative exploration results in Victoria’s goldfields.
Questions in the middle?
- When will the pending assay results from Apollo drilling be released, and how might they impact resource estimates?
- What are the company’s plans for the retained Sarama Resources options amid current market conditions?
- How will recent exploration findings influence the timeline and scale of development at Lauriston and Apollo?