Precious metals developer Redstone Resources has successfully raised A$2.2-million through an oversubscribed private placement, at an issue price of 1.2c apiece.
The directors of the ASX-listed company have also reserved the right to place a further A$325 000 at the issue price, subject to shareholder approval, to bring the total raising to A$2.6-million.
Redstone says the placement received strong support from several new sophisticated and professional investors introduced by the lead manager to the offer, 180 Market.
The company will use proceeds for exploration on the West Musgrave project, in Western Australia.
Redstone is in the process of planning of a reverse circulation drilling programme and will start once government approvals and heritage clearances have been granted.
The company believes the project is prospective for copper mineralisation across the tenure, beyond the existing Tollu copper vein deposit, warranting further evaluation and follow-up in this planned drilling programme.
The company last year identified drilling targets during a project-scale mapping and rock chip sampling programme.
“Further evaluation of the broader highly prospective West Musgrave project has the potential to add to its current Tollu copper resource of 3.8-million tonnes grading at 1% copper, containing 38 000 t of copper, both at Tollu and areas outside of Tollu,” Redstone reports.
This while the global copper price and sentiment remains strong. Copper hit a nine-year high of $8 437/t in mid-February.