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- Adavale Resources (ADD) receives firm commitments to undertake a $2.09 million placement
- A total of 38 million shares will now be issued to sophisticated and professional investors at 5.5 cents
- Adavale will also be undertaking a share purchase plan to raise a further $1 million with shareholders able to subscribe for shares worth up to $30,000
- The company will use the money to speed up exploration at the Kabanga Jirani Nickel Project and begin exploration at its South Australian uranium tenements
- Shares in Adavale are down 10.8 per cent on the market and are trading at 5.8 cents at 12:28 pm AEDT
Adavale Resources (ADD) has received firm commitments to undertake a $2.09 million placement.
The company entered a trading halt on October 1 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 38 million shares will be issued to sophisticated and professional investors at 5.5 cents.
This price represents a 20.5 per cent discount to the five-day volume-weighted average price.
Adavale will also be undertaking a share purchase plan to raise a further $1 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
The plan will open on October 11, close on November 2 and shares will be issued and allocated on November 5. Shares are expected to begin trading on the ASX on November 8.
Once received, Adavale will use the money from both the placement and share purchase plan to speed up exploration at the Kabanga Jirani Nickel Project and begin exploration at its South Australian uranium tenements.
Chairman Grant Pierce commented on the placement.
“The company is delighted with the overwhelming support received in the placement, which we believe is a solid endorsement for the exploration potential of our 100 per cent owned Tanzanian sulphide nickel project and our 100 per cent owned uranium prospects in South Australia,” Mr Pierce said.
“We expect busy months ahead as we strive to unlock value from our nickel and uranium projects through exploration success.”
Shares in Adavale were down 10.8 per cent on the market and ewre trading at 5.8 cents at 12:28 pm AEDT.
