• Red Metal increases share purchase plan by 200% to $6m to meet extremely strong demand
  • Additional funds will enable acceleration of geological, mining, metallurgy, and infrastructure studies at Sybella rare earths project
  • Proceeds will also be used to drill high-priority copper-gold and Hemi-style gold targets at the Pardoo project

 

Special Report: Shareholders in Red Metal have demonstrated their confidence in the company’s exploration and project plan, wildly oversubscribing for a share purchase plan launched in late September.

While the SPP offering eligible shareholders up to $30,000 worth of shares priced at 10c each was originally intended to raise $2m, it ended up being massively oversubscribed with applications received for almost $6.6m worth of shares.

To meet this demand, Red Metal (ASX:RDM) has elected to increase the size of the SPP 200% to $6m.

It has completed a scale-back of valid applications on an equitable basis consistent with the terms of the SPP.

The additional funds enable the acceleration of the company’s pre-development geological, mining, metallurgy and infrastructure studies at the Sybella rare earths project in Queensland as well as drill testing of high priority copper-gold targets at the Gulf, Corkwood, Three Ways and Pernatty Lagoon, and Hemi-style gold targets on Pardoo in WA.

Managing director Rob Rutherford welcomed the results, saying it demonstrated the strong support the company’s management and exploration team enjoys from its shareholder base.

“We are excited to put these funds to work by accelerating studies on our giant Sybella rare earth discovery and testing several high-priority base metal targets within our impressive exploration portfolio.”

 

Sybella project

Red Metal defined a maiden resource of 4.8Bt at 302ppm neodymium-praseodymium and 28ppm dysprosium-terbium for Sybella earlier this month, an impressive achievement that no doubt played some role in the strong response to the SPP.

The high composition of valuable magnet rare earth oxides adds to its attractiveness.

Sybella mineralisation starts from surface and remains open below 100m depth, indicating that there’s potential for further growth.

Early-stage drilling, metallurgical and comminution studies have indicated that a low-cost, low-capital, heap leach processing option may prove feasible while work has already produced a mixed rare earth concentrate with 48.7% total rare earth oxides and MREOs making up 39.5% of this product.

 

 

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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