Rackla Metals (TSX-V:RAK) has closed a C$3.65 million ($3.67 million) non-brokered private placement. The company plans to use the proceeds for exploration and drilling at its Lentung Tungsten Property in Canada’s western Northwest Territories.
The company issued 10 million flow-through units at C$0.365 each. Each unit comprises one flow-through common share and one warrant, allowing investors to acquire a non-flow-through common share at C$0.365 for two years after closing.
Rackla must incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures by 31 December 2027. These expenses will be renounced to investors with an effective date no later than 31 December 2026.
The company paid a finder’s fee of C$150,000 in cash and issued 600,000 non-transferable warrants, exercisable at C$0.365 for two years.
Securities issued to placement investors are not subject to resale restrictions under applicable Canadian securities laws. Shares acquired through exercising the finder’s warrants carry a resale restriction until 24 January 2027.
The financing remains subject to final TSX Venture Exchange approval.
The raise follows the start of a helicopter-borne magnetic and radiometric survey across Lentung, as previously reported by Mining.com.au.
Rackla’s wider exploration campaign includes a planned 10,000m drilling program, comprising 4,000m of diamond drilling and 6,000m of reverse circulation drilling. Work began in August, marking the first drilling at the property in 44 years.
The campaign aims to build a modern geological and assay database capable of supporting a mineral resource estimate.
Rackla Metals is a Vancouver-based explorer focused on tungsten and rare earth minerals in the Tombstone Gold-Tungsten Belt of eastern Yukon and western Northwest Territories.
Write to France Pinzon at Mining.com.au
Main image: Rackla Metals
