Adelong Gold strengthens position

Adelong Gold (ASX:ADG) has successfully completed its transaction with Cosmo Gold Limited. The company settled an outstanding loan through an agreement with Sarama Resources Ltd, receiving 25 million fully paid ordinary shares and 7.5 million options valued at approximately $675,000. This move bolsters Adelong's asset portfolio and aligns with its growth strategy in the gold and rare earth sectors.

Adelong's strategic transaction outlook

The successful transaction between Adelong Gold and Cosmo Gold Limited, resulting in equity in Sarama Resources, marks a strategic enhancement of Adelong's balance sheet. By acquiring 25 million shares and 7.5 million options in Sarama, valued at $675,000, Adelong secures a significant stake in Sarama's gold assets. This move is expected to strengthen Adelong's asset portfolio, enabling growth in the gold and rare earth sectors. As part of the transaction, Sarama Resources will acquire an 80% interest in the Cosmo Project, with an option for the remaining 20% within two years. The proceeds from this transaction will allow Adelong to advance its Adelong Goldfield Project in Australia and lithium exploration in Brazil, emphasizing its commitment to unlocking shareholder value and expanding exploration capabilities.

Executive insights on transaction

The transaction strengthens Adelong's asset portfolio and positions the company for growth in the gold and rare earth sectors. This aligns with Adelong's strategy to enhance its project portfolio and liquidity, allowing the company to further advance its projects in Australia and Brazil.