Adavale Resources has nabbed funding for up to $2 million (before costs) to progress drill testing of priority nickel sulphide targets at its Kabanga Jirani Nickel Project in Tanzania via the issue of unsecured Convertible Notes.

Earlier this year the company intercepted nickel sulphide host rocks at the Hem 2 target, which will be the focus of exploration for 2023. 

“We are pleased to secure the funding especially in this current market and welcome a number of new sophisticated and professional investors,” Adavale Resources (ASX:ADD) executive director David Riekie said.

“This funding allows us to hit the ground running at the end of the wet season in Tanzania, continuing the testing of our high-priority targets at Kabanga Jirani.

“Current site activities include a soil geochemistry survey and downhole EM will be used to refine the drilling program, which is planned to re-commence in April.”

Two tranches planned

The Convertible Notes will be issued in two tranches to both new and existing groups of sophisticated and professional investors.

Tranche 1 comprising $990,000 (99 Convertible Notes at $10,000 each) is expected to be settled by 24 March 2023.

The balance of the funding comprising Tranche 2, $1,010,000 (101 Convertible Notes at $10,000 each) will be issued and paid upon receiving shareholder approval to be sought at a general meeting proposed to be held in April 2023 (EGM).

The company is also proposing to issue investors with free attaching options, to be issued subject to shareholder approval at the EGM.




This article was developed in collaboration with Adavale Resources Limited (ASX:ADD), a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.