Raiden Resources raises $10m to triple Andover South lithium drilling

Raiden Resources raises $10m at $0.032 per share to expand Andover South drilling
Company to expand from 5000m to up to 15,000m of diamond drilling
Placement price represents 17.9% discount to last traded price

Special Report: Raiden Resources has received binding commitments from sophisticated, professional and institutional investors to raise $10m via a placement at $0.032 per share to expand its drilling program at the Andover South lithium project in WA.

The company has mapped out a significant pegmatite field at the project, which is adjacent to the world-class Andover Lithium discovery.

The project also hosts seven target zones with pegmatites that span ~>4.2km strike, with high fractionation levels within the pegmatites indicating strong potential for lithium mineralisation.

In addition, a significant portion of surface samples over the target areas have assayed over 1% Li2O, with significant results including 3.80% Li2O, 3.64% Li2O and 2.97% Li2O.

The placement means Raiden Resources (ASX:RDN) will be well capitalised to accelerate and expand drilling program on Andover South from 5000m of diamond drilling up to 15,000m, after positive initial observations from the first five holes and with further spodumene observed in a pegmatite outcrop in Target Area 2A.

The program will expand drilling in target areas 1, 2 and 7, with a second diamond drill rig planned to arrive this week.

Drilling to greater depths

“With the $10m capital raising and the available funds, the company is now substantially funded to expand on the drill program for up to 15,000 metres,” Raiden managing director Dusko Ljubojevic said.

“This decision was made on the basis of observations from the initial drilling, as well as recently defined spodumene mineralisation, which we interpret is hosted within target areas 1 and 2.

“The drill program will be evaluating both of these target areas at greater depths and will include target area 7 as well.

“With additional drill rigs about to be mobilised, we anticipate that the company will be in a position to generate regular news flow once the results are received from the laboratory.”

This article was developed in collaboration with Raiden Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.