- Adelong Gold (ADG) taps investors for $1.15 million through a share placement and convertible notes
- Funds will go towards exploration at the Adelong gold project, including further drilling to begin this quarter
- Adelong will raise majority of the funds through a shortfall placement at 1.2 cents per share, while the remaining $250,000 will be raised through convertible notes at 2.4 cents each
- The company says drilling will test the existing drill targets to identify further deposits and increase resources available to the Adelong mine
- ADG shares dropped 22.2 per cent, trading at 1.4 cents at 1:01 pm AEDT
Adelong Gold (ADG) has tapped investors for $1.15 million through a share placement and convertible notes.
Funds will go towards advancing exploration at the Adelong gold project, including further drilling to begin this quarter.
Adelong will raise $900,000 through a shortfall placement, made up of 74.99 million new shares at 1.2 cents each – representing a 50 per cent premium to the entitlements offer price.
The new shares make up part of a rights issue shortfall of 132,093,679 ordinary shares, able to be issued at the discretion of the company directors within three months from December 19, 2022.
The remaining $250,000 will be raised through convertible notes, convertible at 2.4 cents per share within 18 months of issue with an eight per cent interest rate.
“The company is pleased to raise $1.15 million by placing approximately half of the shortfall from its recent entitlement issue and convertible notes it has agreed to issue,” Adelong Gold Managing Director Peter Mitchell said.
“Funds raised will be used to continue drilling activities at Adelong designed to test some of the many different existing drill targets in order to identify further deposits and increase resources available to the Adelong mine.
“As previously detailed in the scoping study released on October 31, 2022, additional
resources should go straight to the bottom line potentially expanding the returns from the mine dramatically.”
ADG shares dropped 22.2 per cent, trading at 1.4 cents at 1:01 pm AEDT.