Australian explorer Adelong Gold (ASX:ADG) is set to raise $500,000 in a share placement to fund the final round of 2023 drilling at its Adelong Gold Project in New South Wales.
The company reports the funds raised will be used to complete a proposed drilling program targeting extensions at the Sawpit and Gibraltar deposits, along with working capital purposes. Additionally, this planned drilling program could deliver resource upgrades at the project to help Adelong assess its future.
Under the placement, Adelong plans to issue 62.5 million shares at $0.008 per share, with an attached option for every 2 shares subscribed for. These options will be exercisable at $0.02 on or before 3 years after being issued.
New shares in the placement will be issued under Adelong’s existing placement capacity on or around 4 July 2023.
Commenting on the placement, Adelong Gold Managing Director Peter Mitchell says: “Adelong is pleased to complete this placement which is expected to fund a final round of drilling for 2023 at the Adelong Gold Project.
The company has already announced 2 rounds of drilling so far this year, which have delivered excellent results confirming the potential for a maiden resource at Gibraltar and Sawpit and possible extensions to the JORC resource at Caledonian.
“Following the completion of this next round of drilling, the company will be in a position to assess the future of the project”
This proposed third round of drilling is expected to allow the company to upgrade its resource estimate and proposed mine life and will complete the resource and modelling work targeted by the company when it acquired the Adelong Gold Project in 2020. Following the completion of this next round of drilling, the company will be in a position to assess the future of the project.
Additionally, geochemical soil sampling is underway to explore some of the areas of prime exploration potential that have not been drilled previously to provide future drill targets and opportunities to expand the resource further.”
Adelong Gold is an ASX-listed minerals explorer with a particular focus on gold. In May 2020, the company took control of the Adelong Gold Project, which covers 70km-square in Southern New South Wales and consists of 17 freehold properties, with all mining and processing plant equipment located on-site.
The company’s latest quarterly report, published on 18 April 2023, states Adelong held a cash position of $1.079 million as of 31 March 2023.
Write to Harry Mulholland at Mining.com.au
Images: Adelong Gold Ltd