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- With a new board and a new direction, Adavale Resources (ADD) has withdrawn the renounceable entitlement offer it announced on August 7
- Today’s announcement comes hot on the heels of Wednesday’s new board appointments and Thursday’s communique about the company’s refreshed focus on East African nickel assets
- Adavale holds the Kabanga nickel project, which sits in a highly prospective nickel region and holds one of the world’s largest high-grade nickel resources
- The company will also assess other African nickel sulphide projects which could complement its existing portfolio
- Adavale Resources is trading 3.7 per cent lower at 2.6 cents
With a new board and a new direction, Adavale Resources (ADD) has withdrawn the renounceable entitlement offer it announced on August 7.
Today’s announcement comes hot on the heels of Wednesday’s new board appointments and Thursday’s communique about the company’s refreshed focus on East African nickel assets.
Rights issue
Adavale had offered the renounceable pro-rata entitlement offer in the hopes of raising around $1.7 million.
The funds were to be used to pay off creditors, including outstanding directors’ fees of $52,800 and payment of interest on convertible notes of $254,011.
The balance of the money would’ve been used for ongoing working capital requirements, including exploration work on Adavale’s Tanzanian tenements.
The offer was meant to close on August 26 — two days before the announcement the offer had been cancelled.
All application monies will now be returned to subscribers.
The company withdrew an almost identical offer in late July, before the August 7 re-issue. There has been no mention of any new fundraising efforts in the pipeline.
Fresh focus
The new board appointees have considerable experience in African mining operations and made quick work announcing the company’s new focus on the company’s Tanzanian assets.
Adavale holds the Kabanga nickel project, which sits in a highly prospective nickel region and holds one of the world’s largest undeveloped high-grade nickel sulphide
resources of 58 million tonnes at 2.62 per cent nickel.
The company will also assess other African nickel sulphide projects which could complement its existing portfolio.
There’s been no update of what will happen with the company’s uranium project at Lake Surprise, nor its other holdings across South Australia and Queensland.
Adavale Resources is trading 3.7 per cent lower at 2.6 cents as at 3:07 pm AEST.
