PriceSensitive

Red Metal (ASX:RDM) to raise $3M for exploration projects

Mining
ASX:RDM      MCAP $37.76M
12 July 2020 16:00 (AEDT)

Minerals exploration company Red Metal (RDM) has received firm commitments to raise $3 million for its projects.

The company will issue over 33 million shares for 9 cents each to institutional and professional investors via a placement.

Funds from the placement will be used to advance its targets for drilling over its Maronan silver-lead project, Corkwood project and Pardoo nickel-copper project.

In Maronan, the company will be conducting a 2D seismic trial.

At Corkwood it will be starting magnetotelluric surveying for large copper-gold breccia systems.

While at Pardoo the company will be hosting ground electromagnetic surveys.

“The new funds will enable the company to maintain its strong project generation capacity and also be used for general working capital purposes,” the company said in a statement.

On Wednesday, the company entered a trading halt to announce the capital raise, however, shares are now back to trading.

On market close, Red Metal is unchanged and selling shares for 11.5 cents each.

Related News