Redbank Copper (ASX: RCP) has closed a ‘strongly supported’ $4 million placement to underpin a scheduled 2022 field exploration program at its Redbank Copper Project in the Northern Territory.
The capital raising at $0.035 per share will allow the company to progress drill work on priority VTEM targets.
Speaking on the news, Redbank Managing Director Hugh Thomas said: “I am delighted to invite all the new shareholders to the Redbank register as part of this placement, and also thank existing shareholders who contributed to in what we believe will be an exciting year for Redbank.
“With funding now committed and all approvals in place we expect our contracted rig crews to be busy very shortly”
The technical team has worked very hard over the past months in preparation to commence with on ground activities as soon as weather permits. With funding now committed and all approvals in place we expect our contracted rig crews to be busy very shortly.”
The raise was conducted at a 20.2% discount to the 15-day VWAP, and comprises a $3.9 million placement via the issue of 112,142,858 new shares to institutional and sophisticated investors along with a further $100,000 placement to Redbank directors.
The company notes that all new shares pursuant to the placement will be issued under its existing placement capacity, and will be compliant with ASX listing rules 7.1 and 7.1A.
VTEM targets at the Redbank Project announced in October 2021The Redbank Project is located in the southeast McArthur Basin in the Northern Territory, extending west from the Queensland border towards Glencore’s McArthur Mine across a total 14,084km² footprint.
In June 2021 the company released an Inferred Mineral Resource Estimate covering seven breccia-pipe-hosted copper deposits at the project, delivering 8.4Mt @ 1.1% Cu at a 0.3% Cu cut-off for 88,600 tonnes of contained copper.
Moving forward, Redbank reports that it will progress on-ground activities before commencing drill work on priority VTEM targets once weather permits.
