- Adavale Resources (ADD) has updated the market this morning on highlights from the December 2020 quarter
- Initial exploration activities began at its Kabanga Nickel project in Tanzania, with 607 soil and rock chips samples currently awaiting laboratory analysis
- The company picked up a further four prospecting licenses last year, takings its total for the area to seven
- ADD says the political and business climate in Tanzania has “greatly improved” after facing issues regarding retention licenses in previous years
- Adavale Chief Executive Allan Ritchie says 2021 stands to be an exciting period for the company, anticipating an exploration program in the first half of the year
- ADD shares are trading flat on the market at 7.5 cents each
Adavale Resources (ADD) has updated the market this morning on highlights from the December 2020 quarter.
The company’s exploration efforts at its Kabanga Jirani Nickel project have commenced in Tanzania after it picked up a further four prospecting licenses for the area last year.
A total of 41 pits were dug to depths of one metre to five meters and 607 soil and rock chip samples were delivered as part of ADD’s initial exploration program in the Kegera Region of Northwest Tanzania.
The samples have been delivered to the laboratory for analysis.
Overall, Adavale Chief Executive Allan Ritchie says 2021 stands to be an exciting year for the company.
“Our team in country have wasted no time managing the expedient granting of Adavale’s licences and mobilisation for boots on the ground fieldwork,” he commented.
“We have now secured a world class land holding, cleaned up the balance sheet, recapitalised the business and are well-positioned to execute an aggressive program of exploration in the first half 2021,” he concluded.
Operational highlights
In terms of operational matters, Dave Dodd has been appointed as principal consultant at MSA Group — the technical consultants for ADD — in South Africa to oversee the explorer’s JORC requirements.
Adavale Chief Executive Officer Allan Ritchie has also commented on the political and business climate in Tanzania, citing it as “greatly improved”.
Corporate highlights
ADD managed to raise $1.29 million via a share purchase plan at the cost of 43 million new shares and a further $1.4 million was via strategic placement.
17,500,000 options at 0.06 cents each were issued, earmarking an additional $1.05 million when exercised.
The exercise of the options would bring in a further $1.05 million, with “the lion’s share” expected to be applied to exploration, according to the company.
All up, Adavale says its market cap grew from $2.5 million to $21.4 million.
ADD shares are trading flat on the market at 7.5 cents each at 1:21 pm AEDT.