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Adavale Resources Limited (ASX:ADD) explores and mines metals. The Company develops and processes uranium properties in Australia.
On 15, January 2019, the company stated that a Standby Subscription pact has been inked with the GTI Holdings Ltd for a $1,000,000 funding facility, in order to full fill the working capital requirements of the Company. Till the end of December 2018, an amount of $498,157 had already been drawn against this facility, and 48,235,220 shares have been issued as a consequence.
In addition, there has been a $25,000 advance provided on 28 December 2018 pending issue of the related shares in January 2019. These above-mentioned shares have been issued at 80% of 5-day VWAP calculated prior to each drawdown. The remaining amount of the facility is $476,843.
The Company holds three tenements in the Lake Surprise region. All three tenements were renewed for a period of two years. There were no field activities which were undertaken for the quarter which ended on the 30 September 2018.
Management focus in the last quarter has been on plans for the âLake Surpriseâ Uranium tenement and continuing to look for additional Mining and Energy assets to compliment Adavaleâs growth outlook. Adavale intends to procure the appropriate asset so as to accrete capital appreciation for shareholders and move the Company towards a positive cash-flow outcome. Cash & cash equivalents at the end of the period were $9,000.
For the FY 2018, the consolidated profit for the company was recorded at $122,451 vis-Ã -vis the net loss $517,625 of the prior year. Also, the company registered a loss of $545,457 from the continuing operations and a profit of 667,908 from the discontinuing operations. For the year, the company didnât derive any revenue from its continuing operations, and most of the expenses that were incurred were mainly upon the statutory compliance and the administrative works associated with the tenements which are located in the regions of both Australia as well as Indonesia.
Also, during the FY 2018, the company had disposed of its interest in the subsidiary company PT Prima Perkasi Adabi & thus subsequently lost interest in the Indonesian coal assets project named as TAPAN. However, the company still has maintained its ownership and interests in the Lake Surprise Uranium area, which is located in South Australia. The company will utilize the proceeds garnered from the sale of its interest in the Indonesian coal assets project to repay its current liabilities and consequently improve its financial position and strengthen its balance sheet. The company continues to work on its cost efficiencies and thus had continued to work upon the curtailment of the administrative costs which were associated with the company head office. Considering the above position. No dividends were declared and paid by the company during the financial year.
In the meantime, the stock price of the company has fallen by 8.33 percent in the past six months as on 26 November 2018. ADDâs shares last traded at $0.011 with the market capitalization of circa $1.12 Mn.
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