Red Metal Limited: New Drilling Programs and Share Purchase Plan to Raise $2.0 Million
RED METAL LIMITED (RDM) Share Update September 2024 Monday 23rd
Red Metal Limited Announces Drilling Programs and Share Purchase Plan
Red Metal Limited (ASX: RDM) has unveiled plans for multiple drilling programs in Northwest Queensland and a Share Purchase Plan (SPP) aimed at raising $2.0 million. The announcement marks a significant step forward for the company as it aims to advance its exploration projects and offer shareholders an opportunity to invest further.
Instant Summary:
- Multiple drilling programs to commence in Northwest Queensland.
- Share Purchase Plan (SPP) to raise $2.0 million at $0.10 per share.
- Drilling programs to test base metal targets at Gidyea and Lawn Hill projects.
- Infill resource definition drilling at Sybella rare earth oxide discovery.
- Additional funding support from Queensland Government’s collaborative exploration grants.
Drilling Programs
Red Metal Limited has announced the initiation of several drilling programs in Northwest Queensland, targeting two standout base metal targets at the Gidyea and Lawn Hill projects, and completing infill resource definition at the Sybella rare earth oxide discovery. These programs are set to commence over the next month.
At the Gidyea project, drilling will test a significant regional gravity anomaly for a large copper and gold breccia system, similar to the nearby Ernest Henry copper and gold mine. The Lawn Hill project will target a key stratigraphic gravity target at the Bluebush prospect, which has the potential for a giant Century-style silver-lead-zinc deposit.
Share Purchase Plan
In addition to the drilling programs, Red Metal Limited is offering eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP) to raise $2.0 million (before costs). The SPP will allow existing shareholders to purchase discounted shares at $0.10 per share. The funds raised will be used to support the drilling programs and for general working capital.
The SPP offer period will open on Monday, 7 October 2024, and is expected to close on Friday, 18 October 2024. The terms and conditions of the SPP will be detailed in an SPP offer booklet to be lodged with the ASX on Friday, 4 October 2024.
Project Details
The Sybella rare earth oxide (REO) discovery will undergo infill resource definition drilling to increase resource confidence and enable more precise mining studies. This will facilitate discussions with potential end users and fast-track mining studies.
The Gidyea project targets the underexplored extension of the Cloncurry terrain, which offers scope for large Iron-Oxide Copper-Gold (IOCG) breccia systems. Extensive gravity surveying has highlighted a standout gravity target (GT29), which has the potential to be a large IOCG breccia. Drilling is set to commence on 26 September 2024.
The Lawn Hill project’s Bluebush prospect contains over 88 historic drill holes, with many returning wide intercepts of low-grade zinc and lead. A new high-resolution gravity survey identified a high-priority stratigraphic gravity target (BB1-BB2), offering scope for a giant Century-style silver-lead-zinc deposit. Drilling on the BB1 target has been awarded $150,000 of funding support from the Queensland Government’s collaborative drilling initiative.
The announcement of multiple drilling programs and a Share Purchase Plan is likely to have a positive impact on Red Metal Limited's stock. The potential for significant discoveries at the Gidyea and Lawn Hill projects, along with the advancement of the Sybella REO discovery, could boost investor confidence. The additional funding from the Queensland Government further supports the company's exploration efforts.
Investor Reaction:
Analysts are likely to react positively to the news, given the promising targets and the strategic use of funds from the SPP. The discounted share purchase opportunity may also attract existing shareholders to increase their holdings, anticipating potential gains from successful drilling outcomes.
Conclusion:
Investors should keep a close eye on Red Metal Limited's upcoming drilling programs and the results that follow. The Share Purchase Plan offers a unique opportunity to invest in the company's promising projects at a discounted rate. As the drilling programs progress, further updates will be crucial in assessing the potential long-term impacts on the company's stock and overall market position.