Key Highlights

  • Adavale has firm commitments to raise approximately A$4.65 million at A$0.03 per share through a placement of up to 155 million shares.
  • Directors and management will subscribe for about A$120,000 through 4 million shares, subject to approval at the AGM.
  • The Parkes Project gold inventory has grown from zero in January 2025 to 383koz Au, including 263koz at London-Victoria after a 228% upgrade.
  • The Scoping Study is expected to be completed in November 2026.

Adavale Resources Limited (ASX:ADD) has received firm commitments to raise approximately A$4.65 million before costs through a placement of up to 155 million fully paid ordinary shares at A$0.03 each. Investors in the placement include the company's existing cornerstone investor, other existing shareholders and new strategic investors, with institutional, sophisticated and professional investors participating.

Directors and management will separately subscribe for approximately A$120,000 through the issue of 4 million new shares. That portion requires shareholder approval at the Annual General Meeting, which is to be convened in late November. Blue Ocean Equities Pty Ltd has been appointed Lead Manager to the placement, and the proceeds are described as being before costs.

Placement Structure, Pricing and Timing

The placement will be completed in two tranches. Tranche 1 comprises 91.48 million new shares and uses the company's available placement capacity under ASX Listing Rules 7.1 and 7.1A. Settlement of Tranche 1 is scheduled for Wednesday 28 October 2026, with allotment and trading to follow on Thursday 29 October 2026. The balance under Tranche 2, including the directors' participation, depends on shareholder approval at the AGM. The new shares will rank equally with existing fully paid ordinary shares.

The issue price of A$0.03 compares with several reference points up to 19 October 2026. It is an 11.8% discount to the closing price of A$0.034 on that date, a 12.3% discount to the five-day VWAP of A$0.034 and a 17.0% discount to the 10-day VWAP of A$0.036.

Use of Funds Across the Parkes Project

Proceeds will be applied to exploration and development at the Belt-Scale Parkes Project, together with the cost of the offer and general working capital. The first use is resource expansion drilling across London-Victoria and the wider near-mine satellite portfolio, which includes Calarie, aimed at growing and upgrading the current 383koz Au Mineral Resource.

A second use is first-pass drilling, geophysical surveys and surface sampling at Ashes and other priority greenfields targets. Ashes is a porphyry copper-gold target that has returned high-tenor IP chargeability anomalism and rock-chip results of up to 10.65g/t Au, 1.98% Cu and 158g/t Ag.

The remaining items are metallurgical test work and pre-development activities, and completion of the Scoping Study, expected in November 2026. Metallurgical work continues on diamond core to characterise ore types and assess recoveries. The Scoping Study will assess pit design, project scale, recovery assumptions and permitting requirements, as well as the possible incorporation of Calarie as a supplementary ore feed. High-resolution airborne geophysics is also planned to refine structural interpretation and prioritise follow-up drilling.

Resource Growth and Landholding

Executive Chairman and Chief Executive Allan Ritchie thanked shareholders and the new strategic investors, and said the Parkes Project had moved from no JORC Resource to a 383koz gold inventory over 20 months. The gold inventory stood at zero in January 2025. London-Victoria has been upgraded by 228% to 263koz Au, of which 126koz is classified as Indicated.

The project comprises the Calarie Mining Licence, the London Victoria Mine and 10 granted exploration licences covering about 610 km2 across 70km of contiguous strike in the Macquarie Arc of the Lachlan Fold Belt in New South Wales. The company notes that the region hosts Cadia Ridgeway (35.1Moz Au and 7.9Mt Cu) and Northparkes (5.2Moz Au and 4.4Mt Cu), the latter lying directly west of and adjacent to the Parkes Project.

Adavale also holds the Kabanga Jirani Nickel Project in Tanzania, a portfolio of 11 granted licences covering about 1,000 km2. The company holds 100% of all licences except two, the Luhuma farm-in licences, which are held at 65%. The nine southernmost licences are proximal to the Kabanga Nickel Deposit (87.6Mt at 2.63% Ni Eq), and the Luhuma farm-in adds a further 99 km2 to the portfolio.

Where the Numbers Leave the Company

Adavale has secured commitments of about A$4.65 million at A$0.03 per share, with 91.48 million Tranche 1 shares due to settle on 28 October 2026 and the balance, including A$120,000 from directors and management, pending approval at the AGM. At 155 million shares and A$0.03 each, the full placement equates to the A$4.65 million headline figure. The funds are earmarked for drilling, geophysics, metallurgical test work and the Scoping Study due in November 2026. The Parkes Project resource stands at 383koz Au, with London-Victoria contributing 263koz.