Adavale Resources has raised $5.15 million in a strongly supported placement to fund an expanded drilling program at its London Victoria Gold Mine and advance regional exploration efforts.
- Placement raised $5.15 million with cornerstone investor maintaining 20% stake
- Directors and management subscribed $168,000, reinforcing confidence
- Funds allocated to Phase 3 drilling, metallurgical testing, and resource updates
- Promising drill results suggest potential for significant resource growth
- Placement includes new shares and options, pending shareholder approval
Strong Investor Backing for Growth
Adavale Resources Limited (ASX – ADD) has successfully completed a $5.15 million placement, attracting strong support from its cornerstone investor, who maintained a 20% holding, alongside existing shareholders who either held or increased their stakes. Directors and management also participated, subscribing for $168,000, signalling robust internal confidence in the company’s strategy.
The placement, conducted in two tranches, will see approximately 103 million new shares issued at $0.05 each, with the second tranche and directors’ participation subject to shareholder approval. Investors will also be offered listed options exercisable at $0.10, expiring in December 2027, further aligning interests with the company’s growth ambitions.
Advancing the London Victoria Gold Mine
Proceeds from the placement are earmarked primarily for advancing the brownfields London Victoria Gold Mine through a more extensive Phase 3 drilling program set to commence shortly. Previous drilling phases have delivered encouraging intercepts, including 10 metres at 1.95 grams per tonne gold and 14 metres at 2.62 grams per tonne, reinforcing the potential for a meaningful uplift in the mineral resource estimate.
Beyond drilling, Adavale plans to undertake metallurgical testing to better understand ore characteristics and recovery potential, update its mineral resource estimates to reflect new data, and conduct preliminary scoping studies to evaluate development pathways. High-resolution airborne geophysical surveys will also be employed to refine structural interpretations and improve targeting accuracy.
Broader Exploration and Strategic Positioning
While the London Victoria project remains the immediate focus, Adavale is simultaneously advancing greenfields exploration across its broader Parkes Gold and Copper Project. This includes systematic geochemical sampling and first-pass drilling of priority targets generated through geophysical surveys, aiming to uncover new discoveries within a highly prospective region adjacent to world-class operations like Cadia Ridgeway and Northparkes.
The company also continues to evaluate opportunistic initiatives within the Parkes region, maintaining flexibility to pursue value-accretive transactions, although no binding agreements are currently in place.
Outlook and Market Implications
Adavale’s successful capital raise and strong shareholder support underscore market confidence in its exploration and development strategy. The upcoming Phase 3 drilling results, combined with pending assays from seven additional holes, will be critical in shaping the company’s resource profile and informing future development decisions.
With a well-funded balance sheet and a clear plan to advance both brownfields and greenfields projects, Adavale is positioning itself to unlock significant value in a Tier-1 mining jurisdiction. Investors will be watching closely for updates on drilling progress, resource upgrades, and shareholder approvals in the coming months.
Bottom Line?
Adavale’s capital raise sets the stage for a pivotal drilling campaign that could redefine the London Victoria Gold Mine’s potential.
Questions in the middle?
- What will the pending assay results from the seven additional holes reveal about resource expansion?
- How will shareholder approval impact the timing and execution of the second tranche and options issuance?
- What are the prospects for new discoveries in the broader Parkes Gold and Copper Project beyond London Victoria?