Adavale Resources Limited (ASX: ADD) ('or the Company') is pleased to advise that it has received binding commitments to raise $550,000 (before costs) through a placement to new and existing professional and sophisticated investors ('Placement').
The Placement will comprise the issue of approximately 183 million new fully paid Ordinary shares at an issue price of $0.003 per share ('New Shares') and a 1:1 free attaching option exercisable at $0.005 each, expiring 31 December 2027 ('Attaching Options'). Proceeds from the Placement will be used to accelerate exploration activities within Adavale's highly prospective uranium prospects including an aircore drilling program at MacDonnell and George Creek as well as the Maree Embayment Project
Adavale's Executive Director, David Riekie commented: 'We are very grateful and thankful for the support of our new and existing shareholders, especially in this difficult market. The funding allows us to advance our uranium exploration activities in our highly prospective grounds. We are very pleased to be able to secure the uranium rights on the Wirrulla Project, expanding our footprint within the Narlaby palaeochannel which hosts the Yarranna uranium deposits. 'We look forward to unlocking shareholder value in the coming months through our maiden drilling program
Commenting on Mr Nic Matich's appointment, Adavale's Chairman, Grant Pierce said: 'On behalf of the Board I welcome Mr Nic Matich to the Board as a Non-Executive Director. His resource sector experience, market knowledge, along with his intimate understanding of the Wirrulla Project and the nuances of operating in South Australia will greatly benefit Adavale's exploration programs.'
Wirrulla Uranium Project
Adavale has executed a binding Heads of Agreement with Pinnacle Minerals Limited (ASX:PIM) to acquire 100% of its uranium rights on the Wirrulla Project in South Australia. Wirrulla Project (EL6968) is 957km2 of tenure in the northwestern extents of the Eyre Peninsula South Australia. Desktop studies have highlighted the uranium prospectivity in the northern extents of the tenement where the uranium-bearing Narlaby palaeochannel is mapped continuing into the tenement. The palaeochannel hosts high grade uranium mineralisation at Yarranna, only 10km from the targets identified by satellite and radar imagery analysis conducted by Pinnacle Minerals. ISOenergy's (TSXV:ISO) Yarranna Uranium Project has significant intercepts including 3,500ppm U3O8 over 1m from 66m and 1,400ppm U3O8 over 1m from 69m.1
Bonus Option Issue
In recognition of the continuing support received from our shareholders, Adavale intends, subject to ASX approval of the timetable and subject to the issue of a Prospectus in compliance with the Corporations Act, to undertake a Bonus Option issue to all shareholders. The Record Date for the Bonus Option Issue is expected to be post completion of Tranche 2 of the Placement in September 2024 ('Bonus Option Record Date'). A further announcement, including the timetable for the entitlement to and issue of the Bonus Options will be provided by the Company on lodgement of the Prospectus. For every ten (10) shares held at 5.00pm (AWST time) on the Bonus Option Record Date, Eligible Shareholders will be issued with one (1) free Bonus Option. The Bonus Option will have the same terms as the Attaching Options to the Placement, being an exercise price of $0.005 and an expiry date of 31 December 2027.
Contact:
David Riekie
Andrew Rowell
Executive Director White Noise Communications
Tel: +61 2 8003 6733
Email: investor@adavaleresources.com
Competent Persons Statement
The information in this release that relates to 'exploration results' for the Project is based on information compiled or reviewed by Mr Patrick Harvey MAppSc, Australia. Mr Harvey is a consultant for Adavale Resources Limited and is a member of the AIG. Mr Harvey has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration as well as to the activity that is being undertaking to qualify as a Competent Person under the ASX Listing Rules. Mr Harvey consents to this release in the form and context in which it appears. Forward looking statement
Forward looking statements
This document contains forward-looking statements concerning Adavale. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Adavale's beliefs, opinions and estimates of Adavale as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of nickel, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward- looking statements in this document will actually occur
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