Adavale Resources Secures $2.65 Million to Accelerate Gold Drilling at Parkes

Highlights :

• Secures $2.65 Million through a strongly supported placement, including $152,000 from directors, to accelerate gold exploration activities.
• Funds to boost drilling at London Victoria Gold Mine and explore high-potential targets across Parkvale South, Ashes, and other prospects.
• Investors to receive free options (1-for-2) exercisable at $0.035, expiring June 2028, subject to shareholder approval.

Capital Raise Overview

Adavale (ASX: ADD) received firm commitments from both new and existing sophisticated investors, including a cornerstone investor, for a $2.5 million placement at $0.021 per share. Additionally, the company’s directors have pledged to contribute $152,000, bringing the total capital raised to $2.65 million. These funds will be used to accelerate the drilling program at the London Victoria Gold Mine, targeting extensions of existing mineralisation and boosting the current JORC Mineral Resource Estimate (MRE) of

115,000 ounces of gold.

Investors will also be issued free options on a 1-for-2 basis, exercisable at $0.035 each, expiring on 30 June 2028, subject to shareholder approval. Settlement for the main tranche is expected by 14 July 2025, while the directors’ participation will be voted on at the next general meeting.

Funding Exploration and Expansion

Proceeds from the raise will be directed toward:

• Advancing the 10-hole, 2,200m RC drilling program at London Victoria Mine
   
• Follow-up exploration at Parkvale South, Ashes, and other prospects
   
• Reconnaissance on No Mistake, The Dish, and Front Gate tenements
   
• Supporting general working capital and corporate needs

Executive Chairman and CEO Allan Ritchie expressed confidence in the project’s upside, noting the strong historical grades and recent exploration results. GBA Capital Pty Ltd served as the Lead Manager, receiving a 6% fee and 5 million options as part of its engagement.

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