Adavale Resources (ASX:ADD) secures $5.15m placement to advance London Victoria Gold Mine

Adavale Resources has strengthened its balance sheet after securing firm commitments for a $5.15m equity placement, providing funding certainty as the company moves to the next phase of activity at its London Victoria Gold Mine in central New South Wales.

The capital raising, completed across two tranches, follows Phase 1 and Phase 2 drilling that delivered multiple gold intercepts and reinforced the scale and continuity of mineralisation at the brownfields project.

Highlights

• Firm commitments received to raise $5.15m at $0.05 per share across two tranches

• Strong support from the company’s cornerstone investor, maintaining a 20% holding

• Directors and management subscribing for $168,000, subject to shareholder approval

• Proceeds directed to an expanded Phase 3 drilling program at London Victoria

• Assays pending for 7 additional holes from Phase 2 drilling

• Ongoing greenfields exploration across the Parkes Gold and Copper Project

The placement involved the issue of approximately 103m new fully paid ordinary shares, with 60m shares to be issued under existing placement capacity and the balance subject to shareholder approval.

Placement investors will also receive one free listed option for every two new shares subscribed for, exercisable at $0.10 with an expiry of 31 December 2027, subject to shareholder approval. GBA Capital acted as lead manager to the placement.

The funding comes as Adavale continues to build technical momentum at the London Victoria Gold Mine, a brownfields asset where recent drilling has returned intercepts including 10m at 1.95g/t Au from 149m, 12m at 1.48g/t Au from 38m and 48m at 0.82g/t Au from 133m.

The company has also reported higher grade zones within these broader intervals, with drilling results indicating that the mineral system remains open at depth, down plunge and along strike.

The next phase of work is designed to build on this foundation. Funds will be applied to an expanded Phase 3 drilling program, metallurgical test work to characterise ore types and assess recoveries, and the incorporation of new results into an updated Mineral Resource Estimate.

Preliminary scoping studies and high resolution airborne geophysics are also planned to refine structural interpretation and support targeting.

Management participation in the placement was highlighted as part of the announcement, with directors and executives committing $168,000, reinforcing alignment with shareholders as the project advances.

The company also confirmed that assays are pending from 7 additional holes drilled during Phase 2, providing a near term flow of results ahead of the next drilling campaign.

Commenting on the outcome, Managing Director David Ward said the placement had positioned the company to move decisively into its next phase of work, noting that

“the Company is now well funded to advance the London Victoria Gold Mine, following strong Phase 2 results to date. We look forward to updating shareholders as assays from the remaining 7 holes are received. An expanded Phase 3 drilling campaign is expected to commence shortly.”

Beyond London Victoria, Adavale continues systematic greenfields exploration across its Parkes Gold and Copper Project, which comprises five granted exploration licences covering approximately 371.39km² within the Macquarie Arc of the Lachlan Fold Belt.

The company has outlined plans for regional geophysics, surface geochemistry and first pass drilling to generate and test new targets.

With funding secured and a defined program of work in place, Adavale enters the next stage of its London Victoria strategy focused on resource growth, technical studies and regional exploration, set against a broader portfolio that also includes uranium assets in South Australia and nickel interests in Tanzania.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.