- Redstone Resources (RDS) has undertaken a private placement of around 216 million fully paid ordinary shares in the company to raise $2.6 million
- Shares were offered at 1.2 cents per share and received strong support from a number of new sophisticated and professional investors
- The placement was heavily oversubscribed with applications and funds totalling $2,275,000 having been accepted
- The directors have also reserved the right to place up to another $325,000 to bring the total placement to around $2.6 million
- Redstone Resources is down 6.67 per cent, trading at 1.4 cents
Redstone Resources (RDS) has undertaken a private placement of around 216 million fully paid ordinary shares in the company to raise up to $2.6 million.
Shares were offered at 1.2 cents per share and received strong support from a number of new sophisticated and professional investors, introduced by the lead manager to the offer, 180 Markets.
The placement was heavily oversubscribed with applications and funds totalling $2,275,000 having been accepted and received.
The directors have also reserved the right to place up to another $325,000 to bring the total placement to around $2.6 million, subject to the company obtaining shareholder approval.
The placement funds will be primarily used to further advance its 100 per cent owned West Musgrave project. The project includes the Tolly Copper Vein deposit, which has the potential to host economic copper mineralisation.
Planning is currently underway for an upcoming reverse circulation drilling programme at the project, which will begin once requisite government approvals and heritage clearances have been granted.
Results from the latest exploration confirmed and improved the prospectivity of copper mineralisation beyond the Tollu copper vein deposit, which the company believes warrants further exploration.
Redstone Resources is down 6.67 per cent, trading at 1.4 cents at 3:35 pm AEDT.