Two-Tranche Private Placement Offer utilising the company’s Listing Rule 7.1 & 7.1A capacity to raise $1.0m with the ability to take up oversubscriptions at an issue price of $0.004. Approximately $1.0m will be settled in the first tranche, pursuant to the company’s placement capacity; the balance will be settled in a second tranche subject to shareholder approval at an EGM to be convened.
Adelong Gold Limitied (ASX:ADG)
AGD
Lead Manager
Offer Price
A$0.0040
per share
Offer Size
A$1,000,000
Offer Details
Issue Price (Per Share)
A$0.0040
Offer Size
A$1,000,000
Shares Available
250,000,000
Use of Funds
The funds raised will be focused towards:
- Drill program to expand existing resource
- New project generation
- General Working Capital Purposes
Company Summary
Adelong Gold Limited (ASX: ADG) is a mineral exploration and development company strategically focused on transitioning its Adelong Gold Project in New South Wales into commercial gold production. The company acquired control of the Adelong Goldfield in May 2020, encompassing a 70km² tenure, including the historically significant Adelong Gold Project, situated approximately 20km from Tumut and 80km from Gundagai. Notably, the project contains historical production exceeding 800,000oz Au, including 380,000oz from underground operations at an average grade of 45 g/t Au.
Adelong Gold Project
The project hosts a JORC (2012) Mineral Resource estimate of 188,000oz, incorporating the maiden 18,300oz JORC Resource at Perkins West (Gibraltar). Since acquiring the asset, ADG has successfully expanded the total resource base by 45%, with ongoing exploration programs targeting additional growth at the Challenger, Currajong, and Caledonian deposits. Recent soil sampling identified new drill targets northwest of the Adelong Mill, with some samples returning over 1 g/t gold, reinforcing the project's resource potential.
A comprehensive Scoping Study completed in 2022 on 55% of the resource confirmed the project’s robust economic viability, highlighting a forecast net cash flow of A$69 million and an internal rate of return (IRR) of 72%, based on a gold price of A$2,650/oz. The project is fully permitted for mining and processing, with an existing processing facility capable of treating oxide and sulphide ores through a low-cost gravity recovery circuit.
Binding Farm-In Agreement: Great Divide Mining (ASX: GDM)
Adelong has executed a binding farm-in agreement with Great Divide Mining for a staged acquisition of up to 51% of the Adelong Gold Project. GDM will invest $300,000 for an initial 15% stake in Challenger Gold Mines (CGM), with an additional 36% contingent on achieving first gold production within 12 months. ADG will retain a 49% interest with no cash contributions required until production commences. Failure to meet this milestone will result in Adelong Gold retaining 100% ownership. This agreement leverages external capital and expertise to accelerate project development while maintaining ADG’s significant exposure to long-term value.
Indicative Timetable
The above below are indicative only and are subject to change without notice. The Company and Lead Manager reserve the right to extend the Closing Date of the offer or close the capital raise early without notice. All times are in AEDT (Sydney, Australia) unless stated otherwise.
ADG placed in Trading Halt
Wednesday, February 05 2025
Placement Offer Opens
Wednesday, February 05 2025
Placement Offer Closes
4pm AEST Thursday, February 06 2025
Offer letters accepted
Thursday, February 06 2025
ADG Recommences Trading
Friday, February 07 2025
DvP Settlement Tranche 1
Friday, February 14 2025
Allotment of Shares - Tranche 1
Monday, February 17 2025
Extraordinary General Meeting
Approx Late-March 2025
DvP Settlement Tranche 2
Approx Late-March 2025
Allotment of Shares - Tranche 2
Approx Late-March 2025
Documents & Downloads
Board & Management
Mena Habib
Chairman
Mena has extensive experience in management, and sales and marketing, having run multiple businesses with millions of dollars in turnover. Mena has a strong depth of experience in investment markets, with specific expertise in emerging companies in the mineral resources sector. He is currently a Non-Executive Director of Equinox Resources (ASX:EQN).
Ian Holland
Managing Director
Ian has more than 25 years’ experience in the mining industry and was recently the Managing Director of Navarre Minerals Limited. He was responsible for acquiring the Mt. Carlton Mine and Crush Creek project and transitioning the company from explorer to producer.
Ian is a qualified geologist and holds a Masters of Minerals Geoscience and a Graduate Diploma of Applied Finance and Investment in addition to a Degree in Geology, and has experience at the Mount Isa Mines, Mount Gordon Copper Mine and Renison Tin Mine in addition to the Fosterville Gold Mine.
Kurt Lingohr
Non-Executive Director
Kurt has over 30 years of experience in business strategy, marketing and product development, having achieved two significant financial exits in his career after graduating from Monash University with a Bachelor of Business Systems.
Frequent participation in Australian mining investor conferences as a private investor has allowed Kurt to build an extensive professional network and gain deep experience in all facets of investing and value creation, particularly what drives market appetite for junior explorations stocks.
Kurt has joined the ADG board to assist Mena and Ian to help shape strategy, drive shareholder engagement and create value for ADG shareholders.
Disclaimer
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