Adavale Resources has finalised the acquisition of uranium exploration licence 6553 (EL6553) in South Australia.
The company acquired rights, title and interest in the exploration licence from Kilonova Metals following a binding heads of agreement signed in March 2024.
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The deal consideration involved a A$15,000 ($10,082) non-refundable deposit and issuing 25,000,000 Adavale Resources shares.
It also includes deferred consideration of 25,000,000 Adavale shares payable upon Adavale completing a maiden drilling programme.
Covering an area of 456km², the EL6553 licence is divided into two parts: ‘Mundowdna South East’, adjacent to Mundowdna South, and ‘MacDonnell Creek’, located east of Adavale’s Lake Surprise Uranium Project.
With this acquisition, Adavale’s total owned tenure in the Marree Embayment now encompasses 2,258km².
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By GlobalDataAdditionally, the company has applied for a substantial uranium project area east of Ceduna, covering an additional 2,446km².
The next steps for Adavale include the finalisation of heritage clearance surveys and the establishment of drilling programmes at the Marree Embayment Project.
These programmes aim to test for uranium redox boundaries at MacDonnell Creek and its surroundings.
Adavale executive director David Riekie said: “The completion of the acquisition provides a pathway for Adavale to discover an economic uranium deposit following historical results achieved at the MacDonnell Creek and George Creek prospects.
“EL6553 has demonstrated palaeochannels containing ample evidence of elevated uranium occurrences. We also believe other parts of the defined palaeochannel remain under-explored as the initial exploration of the area was abruptly halted following the fall in the uranium price during 2011. We can now capitalise on this earlier exploration and follow up on these clearly defined targets.
“The exploration programme for our uranium prospects is currently being finalised, which will include a drilling programme of up to 40 holes.”
