A $1.65m placement wasn’t enough for investors two days ago, so they’ve topped up with an extra $800k to keep Adavale spinning the drill bit at Kabanga Jirani. Pic via Getty Images.
Mining
Adavale has received a further $820,000 for exploration drilling at its flagship Kabanga Jirani nickel project in Tanzania, taking the total investor placement to $2.47m so far.
Adavale Resources (ASX:ADD) said the additional pouring in of funds will provide an additional ‘runway’ to the current drill program, where the first two holes at the project’s Luhuma Central prospect hit massive nickel sulphides grading 0.99% and 0.57% nickel at depths over 220m.
This latest move is only ~48 hours after receiving binding commitments to raise $1.65m from sophisticated investors.
A third diamond drill hole is currently underway and downhole electromagnetic (DHEM) surveying is being prepared for all three to gain further insights into the project’s potential.
The total placement will comprise the issue of 130 million new fully paid ordinary shares at an issue price of $0.019 per share and a like-for-like (1:1) attaching listed option (ADDOA) exercisable at $0.03 per share which expires at calendar-end 2025.
After the placement, Adavale says it will also conduct a 1 for 5 entitlement offer on the same terms as the placement offer to raise up to another ~$2m to accelerate nickel exploration with additional RC and diamond drilling.
“The interest we received following the placement announcement was very positive, allowing us to accept further funds that give us additional runway for its current exploration drilling program at Kabanga Jirani,” Adavale exec director David Riekie said.
“With two rigs operating across multiple high-priority targets, these funds will allow us to drill additional targets as well as allowing flexibility to inject additional resources as exploration progresses.”
The Kabanga Jirani nickel project is a portfolio of 12 highly prospective granted licences covering roughly 1,315km2 along the Karagwe-Ankolean belt in Tanzania, with strong geochemical and geophysical signatures from previous exploration undertaken by BHP.
Six of those licences, at the southern end of the project area, are located adjacent to Lifezone Metals’ world-class Kabanga nickel deposit that has a resource of 58Mt grading @ 2.62% Ni.
This article was developed in collaboration with Adavale Resources, 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.
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