• Red Metal looking to get busy at three prospective projects across copper-gold, rare earths and base metals in QLD
  • Company to raise $2m through a SPP to fund exploration efforts
  • All projects have nearology to world-class mining operations
  • Drilling on the Gidyea cooper-gold target set to go this week

 

Special Report: ASX explorer Red Metal is getting stuck into three of its standout rare earths, copper and base metals projects in north-west QLD aided by a discounted $2m cap raise to its loyal shareholders.

Red Metal (ASX:RDM) is rattling the tin through a share purchase plan that will give existing shareholders a chance to purchase $2m-worth of shares at 10c – a generous 18% discount to the 5 day VWAP.

RDM will use the funds to dig into three highly prospective projects for:

  • Infill resource definition drilling and further metallurgical test work on its Sybella REE discovery, with an aim to fast track mining studies and initiate discussions with prospective end users after step out drilling earlier this month confirmed vast REE potential.
  • Kick off drilling at the Gidyea project to test a standout regional gravity anomaly for a large copper-gold breccia system in a setting similar to that of the nearby world-class Ernest Henry mining operation; and
  • Get the drill bit spinning at the Lawn Hill project to focus on a key stratigraphic gravity target at the Bluebush prospect which offers scope for a giant Century mine-style silver-lead-zinc deposit.

Diamond core drilling at Gidyea is scheduled to commence this week and then move onto Lawn Hill in October, while infill AC drilling at Sybella is on schedule to start around the same time.

Both Gidyea and Lawn Hill are supported by $390,000 of additional funding from the QLD Government’s collaborative exploration grants, with work at the “must drill” Gidyea prospect to start on Thursday this week.

 

The cap raise will go towards exploration across the Sybella, Lawn Hill and Gidyea projects. Pic: RDM

 

RDM managing director Rob Rutherford says the junior is thrilled about the upcoming drilling programs on the three projects, believing “any one of which has the potential to significantly transform Red Metal”.

“We’re also delighted to offer our loyal existing shareholders a discounted share purchase opportunity before this intense period of drilling activity begins, as they continue to be our strongest supporters,” he says.

Elsewhere, RDM is benefiting from rapid advancement of the drill out of the Maronan silver-lead project through its 44% ownership of Maronan Metals (ASX:MMA).

RDM shares were up 4.5% on the open on Wednesday, September 25.

 

 

This article was developed in collaboration with Red Metal, 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.

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