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Rafaella Resources (ASX:RFR) flags capital raise

The Market Online Deal Room
ASX:RFR
11 February 2022 14:36 (AEST)
Rafaella Resources (ASX:RFR) - Managing Director, Steven Turner (left) and Santa Comba Project Manager, Juan José López Muñoz (right)

Source: Rafaella Resources/Twitter

Rafaella Resources (RFR) has entered a trading halt regarding an upcoming capital raise.

There aren’t yet any details on the capital raise such as how much money will be raised or how exactly the company plans to spend the funds once received.

Earlier this week, the company announced a 24 per cent increase to the underground resource at the Mina Carmen zone within the historical Santa Comba tungsten and tin project in Spain.

Mina Carmen’s underground resource now stands at 291,000 tonnes at 0.95 per cent tungsten and 0.23 per cent tin.

The company said the mineral resource upgrade was highly encouraging as it shows there’s “substantial upside” for an underground operation.

Managing Director Steven Turner said the company is continuing activities to reopen the underground operations and is also undertaking open pit studies.

Further, the company recently entered a binding agreement to acquire two tungsten projects in Portugal and has completed the acquisition of the San Finx tin and tungsten mine in Spain.

In its quarterly report, Rafaella Resources announced ending the December quarter with $990,000 in cash and an estimated 0.7 quarters left of available funding.

When asked if it plans to raise further cash, the company said it “will require further funding and is in discussions with its brokers and various other parties to secure this funding.”

Rafaella expects to remain in the trading halt until February 15.

Shares last traded at 5.9 cents on February 10.

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