Adavale Resources Limited (ASX: ADD) has received binding commitments to raise A$1.65M through a placement to new and existing sophisticated and professional investors.
The placement will comprise the issue of approximately 86.8M new fully paid ordinary shares at an issue price of A$0.019 per share, and a 1:1 attaching listed option exercisable at A$0.03 per share expiring 31 December 2025.
Executive director, David Riekie, commented: “We are grateful for the support of our existing and new shareholders in this placement. We have made significant progress in our understanding of the geology and controls on mineralization at Kabanga Jirani this year, particularly in light of our recent massive sulphide intersections at Luhuma Central.”
After the placement, the company will also conduct a 1 for 5 entitlement offer on the same terms as the placement offer to raise up to approximately A$2M.
The funds will be used to progress and accelerate the nickel exploration at the company’s Kabanga Jirani nickel project in Tanzania, including downhole EM, RC & diamond drilling, general working capital, and costs associated with the placement and entitlement offer.
Mr. Riekie continued, “We firmly believe that the vectors to mineralization are pointing us in the right direction for a discovery. We currently have two drill rigs on site and with this level of exploration activity there should be plenty of news flow over the coming months to look forward to.”
To find out more, please visit www.adavaleresources.com