R3D Resources (ASX:R3D) set to raise $3.3m

• R3D Resources (R3D) plans to raise $3.3 million through a $1 million private share placement and a one-for-five rights issue to eligible shareholders for up to $2.3 million
• The company says it has secured commitments for the private placement, with the new R3D shares offered at an issue price of 10 cents apiece
• The rights issue, offered on equivalent terms, opens on Wednesday April 20
• R3D says the funds will go towards the planned restart of a copper sulphate plant and exploration drilling at its Tartana base metals project and a geophysical survey at its Bulimba copper-gold project in the Chillagoe region in Far North Queensland
• R3D shares last traded at 12 cents on April 5

R3D Resources (R3D) is looking to raise $3.3 million through a $1 million private share placement and a one-for-five rights issue to eligible shareholders for up to $2.3 million.

The company said it had received commitments for the private placement, with the new R3D shares offered at an issue price of 10 cents apiece, representing a discount of about 14 per cent to the five-day VWAP.

The rights issue, offered on equivalent terms, opens on Wednesday April 20.

R3D said the funds would be directed for the planned restart of a copper sulphate plant and exploration drilling at its Tartana base metals project and a geophysical survey at its Bulimba copper-gold project in the Chillagoe region in Far North Queensland.

“We are making significant progress on the refurbishment of our copper sulphate plant with initial production still expected to commence production in 1H FY2023,” Managing Director Steve Bartrop said.

“The company has decided to take advantage of the current market sentiment created by potential supply disruptions with the Ukraine conflict to seek additional funding to accelerate the time frame to production.

“The board has also been conscious of minimising dilution to existing shareholders and will provide eligible shareholders with the opportunity to participate in a one-for-five rights issue at the placement price. All directors intend to take up their full entitlement under this rights issue.”

R3D shares last traded at 12 cents on April 5.