Highlights

• RDN is raisings AU$10 million through a share placement, which was lead by sophisticated, professional and institutional investors.
• The funds will be used to expand the drilling program at Andover South from an initial plan of 5,000m to up to 15,000m.
• The expanded drilling program will focus on evaluating Target Areas 1, 2 and 7.

Raiden Resources Limited (ASX:RDN) has secured firm commitments from institutional, professional and sophisticated investors to raise AU$10 million through a placement of 312.5 million shares at 3.2 cents per share. The capital raised will be used to accelerate and expand drilling at the Andover South Lithium Project.

Initially, the company had planned a 5,000m diamond drilling campaign. However, following preliminary observations from the first five holes and the discovery of spodumene in pegmatite outcrops in Target Area 2, RDN has expanded the program to 15,000m.

The decision to proceed with the placement and expand the drilling program was driven by the company’s geologists identifying additional high-grade drill targets within the project area. The drill program will focus on Target 1, 2 and 7.

More on the placement

The placement has been priced at 3.2 cents a share, representing a discount of 17.9% to the last traded price of 3.9 cents on 9 October 2024. The shares are anticipated to be allocated by 17 October 2024.

Evolution Capital and Kaai Capital acted as the joint lead managers for the capital raise. In consideration, they will receive a fee of 6% of the amount raised, along with 20 million unlisted options at an issue price of AU$0.00001 per option. The exercise price for these option will be AU$0.05 apiece and they will expire 15 months from the date of issue.

Drilling to focus on Target Area 1, 2 and 7

The company is currently conducting mapping on Target Areas 1 and 2, where it has uncovered a previously unmapped pegmatite outcrop along the boundary between these areas. Spodumene crystals were observed in saw-cut specimens from this pegmatite. Target Area 2 was initially identified through anomalous low K/Rb ratios, which are linked to highly fractionated pegmatites.

Based on these findings and the expected extensions of pegmatites within Target Area 1 into Target Area 2, additional drilling will aim at exploring these targets at greater depths.

Spodumene from target Area 1 and 2 Boundary. Image source: Company update

Target Area 7 exhibits similar fractionation rates to the pegmatites found in Target Areas 1 and 2. As a result, the company is developing a drill program to examine these outcropping pegmatites at depth.

Plans ahead

Based on the outcomes of the mapping and drilling activities, the company intends to undertake the following activities-

• Evaluate the pegmatites in Target Area 1 along strike to ascertain the structural nature of the system at shallow depths, with further exploration depending on the results. The samples will be sent for analysis, with preliminary assays anticipated by the end of next month.
• In Target Area 2, access tracks will be constructed, and initial drill tests will be conducted to determine the structural characteristics of the pegmatites, which will also be analysed at greater depths.
• Conduct drill testing in Target Area 7.
• Continuously evaluate the potential for additional mineralisation at Andover South and North.

RDN shares traded at AU$0.044 per share, up over 10%, at the time of writing on 14 October 2024.