Redstone Resources Limited (ASX Code: RDS) ('Redstone' or the 'Company') is pleased to advise that it has received binding commitments for a private placement to professional and sophisticated investors of up to A$600,000 (before costs) through the issue of 133,333,334 million fully paid ordinary shares in the Company at an issue price of 0.45 cents per share (Placement Shares).
Placement participants will also receive, subject to shareholder approval, a one (1) for two (2) free attaching unlisted $0.01 option exercisable for a period of two years from the date of issue (Options) (the Placement).
Commenting on the successful placement and current activities, Chairman Richard Homsany said: 'We are very pleased to have received this strong level of support from new and existing investors which is testament to the high quality of Redstone's West Musgrave Copper Project and personnel. We sincerely thank investors, new and existing, for their strong support. We welcome new shareholders and thank GBA Capital and Barclay Wells for acting as joint lead managers to the Placement. We are excited by the potential of our West Musgrave Copper Project, which encompasses the highgrade Tollu copper deposit, and we are looking forward to completing our current deep diamond drill hole and potential further RC drilling over the coming months.'
Planned activities include the completion of the EIS co-funded deep diamond drill hole (TLD005) at the highgrade Chatsworth Prospect (currently underway), which sits within the Tollu Cu vein deposit (Tollu), as well as for potential future follow up RC drilling in and around the high-grade Chatsworth and Forio Prospects and surrounding priority target areas located outside of the Tollu resource. Drilling of TLD005 of up to 1,200m, which commenced in late April 2025, is aimed to test deep beneath the Tollu Cu veins for evidence of a Voisey's Bay style massive Cu-Ni mineralising system. This is based on Redstone's conceptual exploration model for the current drilling that the high grade Tollu Cu veins could represent a remobilisation of Cu, preferentially leached by hydrothermal fluids from a large, massive sulphide accumulation hosted within a mafic magmatic intrusion at depth (see ASX announcement of 23 April 2025). Further demonstrating the potential of the West Musgrave region, just 60km west of Tollu, is a world class Ni-Cu-Co deposit with Voisey's Bay characteristics - the BHP-owned Nebo-Babel - 390Mt of ore grading 0.33% Cu, 0.30% nickel, for 1.2Mt of contained Ni and 1.3Mt of contained Cu metal. The diamond drill hole TLD005 will be co-funded by the West Australian Government (DEMIRS) for up to $220,000 of the direct drilling costs after Redstone were successful in their Round 29 EIS co-funded drilling grant application.
Placement Details
The Placement received strong support from a number of new sophisticated and professional investors introduced by the joint lead managers to the Placement, GBA Capital and Barclay Wells. GBA Capital and Barclay Wells as joint lead managers will be paid a capital raising fee of 6% plus GST of total Placement funds raised by them. The Directors of the Company have committed to participate in the amount of $30,000 in the Placement, which will be subject to shareholder approval under ASX Listing Rule 10.
The Placement Shares will be issued under the Company's existing placement capacity under ASX Listing Rule 7.1A (92,537,846) and ASX Listing Rule 7.1 (34,128,821), excluding those Shares subject to shareholder approval (6,666,667). The Shares under the Placement (excluding those to the Directors of the Company) are expected to be issued on 5 June 2025 and will rank equally with the Company's existing fully paid ordinary shares. The Options to be issued to Placement participants are subject to receipt of shareholder approval at an Extraordinary General Meeting (EGM) of the Company proposed to be held in July 2025.
Contact:
Richard Homsany
Chairman
Redstone Resources Limited
Tel: +61 8 9328 2552
Email: contact@redstone.com.au
Miranda Conti
Company Secretary
Redstone Resources Limited
Tel: +61 8 9328 2552
Email: contact@redstone.com.au
REDSTONE RESOURCES
Redstone Resources Limited (ASX: RDS) is a base, precious metals and a lithium company exploring its 100% owned prospective West Musgrave Project, which includes the Tollu Copper deposit, in Western Australia. The West Musgrave Project is located between BHP's Nebo-Babel Deposit and Nico Resources' Wingellina Ni-Co project. Redstone continues to evaluate the HanTails Gold Project at Kalgoorlie, Western Australia for potential development in the future. Redstone also has a 50/50 JV with Galan Lithium for the Taiga, Camaro, and Hellcat, located in James Bay, Quebec, Canada (the James Bay Lithium Projects).
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Redstone Resources Limited's (Redstone) planned exploration programme and other statements that are not historical facts. When used in this document, the words such as 'could', 'plan', 'estimate', 'expect', 'intend', 'may', 'potential', 'should', and similar expressions are forward-looking statements. Although Redstone believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
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