Rackla Metals (TSX-V:RAK) has announced it is seeking to raise up to C$3.65 million ($3.66 million) through a non-brokered private placement.
The company plans to direct the proceeds towards its 10,000m drilling and exploration program at the Lentung Tungsten Property in the Northwest Territories, Canada.
Rackla is offering up to 10 million flow-through units at C$0.365 each under the listed issuer financing exemption. Each unit comprises one flow-through share and one warrant exercisable at C$0.365 for 24 months.
The offering price represents a 49% premium to Rackla’s C$0.245 closing share price on 3 September, the last trading day before the offering document was released. Securities issued under the exemption will not be subject to Canadian statutory resale restrictions. The placement remains subject to approval from the TSX Venture Exchange.
Rackla must spend the proceeds on eligible Canadian exploration expenses by 31 December 2027. These expenses will be renounced to subscribers with an effective date no later than 31 December 2026, allowing investors to claim the associated tax benefits.
Funding Lentung’s drilling revival
Drilling at Lentung began in August 2026, marking the first program at the property in 44 years.
Rackla added a second rig to the campaign later that month, as previously reported by Mining.com.au.
The reverse circulation rig is undertaking the program’s planned 6,000m component alongside 4,000m of diamond drilling. The campaign is intended to generate geological and assay data capable of supporting a mineral resource estimate prepared under National Instrument 43-101.
The offering document budgets C$7.09 million for the wider Lentung program, including drilling, surface exploration, geophysics, trenching, assays, and metallurgical test work.
The company aims to complete drilling, surface work, geophysics, and trenching by 31 October. Assay and metallurgical test results are targeted by 28 February 2027.
Rackla completed a separate C$3.44 million flow-through placement in May 2026 at C$0.215 per unit.
It reported working capital of about C$8.46 million as at 31 August. If the latest placement is fully subscribed, Rackla expects to have approximately C$11.86 million in available funds after estimated commissions and offering costs.
The company’s focus on Lentung follows its acquisition and digitisation of data from Union Carbide Exploration’s 1977–82 work program. The historical work included more than 24,000m of diamond drilling, geochemistry, geophysics, internal resource calculations, and mine-development planning.
Rackla says it is using the historical information to guide the current campaign and establish a modern geological and assay database.
The 19,800-hectare property lies about 60km north of the historical Cantung mine along the Howards Pass access road.
Rackla Metals is a Vancouver-based explorer focused on tungsten and rare earth minerals across the Tombstone Belt in eastern Yukon and western Northwest Territories.
Write to France Pinzon at Mining.com.au
Images: Rackla Metals
