Adavale Resources Share Price Up over 50% (ASX:ADD)
Today, a quick look at the Adavale Resources Ltd [ASX:ADD] share price.
The miner had its stock price soar on the news of now being debt-free.
At the time of writing, this news shot the stock price up to 3.6 cents. The removal of this historical long-term debt will free up the company and its ability to move projects forward.
Get our report on ASX-listed nickel stocks here.
What’s happening at Adavale Resources?
Currently the company is involved in two projects, the Kabanga nickel project in Tanzania, and Lake Surprise — a uranium mine in South Australia.
The project area is in South Australia, situated 550 km north of Adelaide, 70 km east of Marree, and covers 2,705 km2 on the northern flank of the Flinders Ranges.
This area in South Australia is known for uranium orebodies on the eastern side of the Flinders Ranges.
While the African site in Tanzania, according to the company, holds one of the world’s largest undeveloped high-grade nickel sulphide resources.
Both projects require money to keep going and with now being debt-free, the company can fast-track work on the sites and focus on expansion as well.
Where to from here for the ADD share price?
The ability to be debt-free came about from the use of convertible notes, with Adavale’s Interim Chairman Grant Pierce commenting:
‘Conversion of the note frees the Company of debt and allows the new Board to not only fast track work on the Kabanga North and North East tenements but also actively focus on expanding the Company’s portfolio of African nickel sulphide assets.’
With the major boost in the ADD share price it is now trading up near the high set back in January of $0.039, this level may prove to be a resistance level to a continued march forward.
Should the price happen to decline, then the levels of $0.034 and $0.030 may provide future support.
For Money Morning
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