Perth-based mineral explorer Redstone Resources (ASX:RDS) has acquired an additional 1,821 hectares over 4 claims at the Attwood Lake Area Lithium Project in Ontario, Canada.
The company on 4 May 2023 entered into an exclusive option agreement to acquire 100% of the legal and beneficial interest in the Attwood Lake Properties, which are considered ‘highly prospective’ for lithium and other rare element pegmatites.
The Attwood Lake Project originally consisted of the Witchwood and Greenside lithium properties, which comprise 3,026 hectares across 7 claims and 2,546 hectares across 6 claims, respectively. With the additional 4 claims, Redstone reports the project has grown by 33% to comprise a single contiguous project tenure of 7,393 hectares across 17 claims.
The company reports the 4 extra claims were included in the option agreement for an additional payment of CAD$4,500 to the vendors. Planning is now underway for phase one exploration at the project to begin as soon as possible.
Redstone reports it has now accepted an oversubscription to the placement of $30,000 and has subsequently issued 3 million additional shares and 1 million options
In tandem with the Attwood purchase, Redstone on 4 May 2023 flagged its plans to raise $1.25 million through the issue of 125 million fully paid ordinary shares at $0.01 per share with a 1-for-3 free attaching unlisted $0.04 option exercisable on or before 31 December 2025.
Redstone reports it has now accepted an oversubscription to the placement of $30,000 and has subsequently issued 3 million additional shares and 1 million options.
This brings the total amount of funds to be received in the placement to $1.28 million.
Additionally, in consultation with lead manager GBA Capital, the Redstone board has decided to re-price the options included in the placement from $0.04 to $0.025.
These options will remain exercisable on or before 31 December 2025, and Redstone says there is no change to the number of securities to be issued as a result of the re-pricing.
Redstone says the share issue under the placement is now expected to occur on 12 May 2023.
Additionally, Redstone’s directors have committed to purchasing up to $250,000 in the placement, subject to shareholder approval. The company says it will seek shareholder approval for the issue of over 42.666 placement options, 1.5 million lead manager options, and the placement shares to be issued to the directors.
Redstone reports the proceeds from the placement will be used to undertake initial exploration at Attwood, along with exploration at the West Musgrave Project, and for working capital purposes.
Redstone Resources is an ASX-listed base and precious metals developer exploring its wholly owned West Musgrave Copper-Nickel Project in Western Australia, along with the Attwood Lake Area Lithium Project in northwestern Ontario, Canada.
The Attwood Lake Area Lithium Project is located about 170km northwest of Nakina in Ontario, which features ‘significant’ lithium oxide deposits including the Seymour Lake and Root Lake-McCombe deposits held by Green Technology Metals (ASX:GT1).
Images: Redstone Resources Ltd