- Iron ore company Reedy Lagoon (RLC) will be undertaking a non-renounceable pro-rata rights offer to raise more than $3 million
- Participants will receive one new share for every seven held at a price of four cents per share
- Once received, Reedy Lagoon will use the money to undertake exploration at its lithium brine projects in the US and for working capital
- Reedy Lagoon holds two lithium projects in the state of Nevada in the US, Alkali Lake North and Clayton Valley, both of which cover a combined area of 3502 hectares
- Shares in Reedy Lagoon are up 3.45 per cent and are trading at three cents
Iron ore company Reedy Lagoon (RLC) will be undertaking a non-renounceable pro-rata rights offer to raise $3.13 million.
Participants will receive one new share for every seven held at a price of four cents per share.
Shareholders can apply for any amount of new shares with further available if some do not take up their full entitlements.
The offer will open on May 10 and close on May 20 with shares to be issued on May 27.
Once received, Reedy Lagoon will use the money to undertake exploration at its lithium brine projects in the US and for working capital.
Reedy Lagoon holds two lithium projects in the state of Nevada in the US, Alkali Lake North and Clayton Valley, both of which cover a combined area of 3502 hectares across 446 placer claims.
The most recent news from the projects came in January when the company received preliminary observations and data interpretations from Alkali Lake North.
Data was collected from a single seven-kilometre traverse trending in an east-west direction and situated in the centre of the project.
The aim of this work was to gain further information regarding the depth and number of aquifers within the project.
This work found shallow reflectors in a basinal structure in the top 500 metres of the earth.
The reflectors were reportedly continuous and coherent through the middle of the survey line and pulled up towards the end.
Shares in Reedy Lagoon were up 3.45 per cent and were trading at three cents at 12:07 pm AEST.