Redcastle Prices 14.3 Million Share Placement at A$0.14 Each

Capital Raise to Accelerate Exploration

Redcastle Resources Limited (ASX:RC1) is injecting fresh capital into its exploration and development pipeline with a A$2 million placement priced at A$0.14 per share. This represents a 6.6% discount to the last closing price and an even steeper 16.5% discount to the 15-day volume weighted average price, reflecting a strategic move to attract firm commitments amid prevailing market conditions.

The placement involves issuing approximately 14.3 million new shares, with nearly 2 million shares issued under ASX Listing Rule 7.1 and the remainder under Rule 7.1A. Notably, Redcastle’s directors are set to participate with a A$45,000 subscription, subject to shareholder approval, signalling internal confidence in the company’s growth trajectory.

Targeted Use of Funds Across Key Projects

The capital raised will be channelled into expediting exploration activities, including drilling at the MCE target and other prospects near the Queen Alexandra (QA) and Redcastle Reef (RR) deposits. These areas have recently yielded promising results, with recent diamond drilling confirming gold potential beyond existing pit limits, underpinning plans for near-term mining operations.

Additionally, Redcastle plans to scout drill highly ranked targets within the underexplored TBone Belt, an area where sixteen new gold targets have recently been identified, enhancing the company’s resource footprint. The placement proceeds will also support advancing the company’s near-term development pathway and exploring potential new ventures adjacent to its current portfolio, maintaining momentum in its Eastern Goldfields expansion strategy.

Placement Management and Cost Structure

Xcel Capital Pty Ltd acted as sole lead manager and bookrunner for the placement, securing a lead manager fee of A$50,000 plus GST alongside a 6% equity raising fee on the total amount raised. The new shares are expected to be issued around 26 May 2026, setting a clear timeline for capital deployment as Redcastle gears towards production milestones.

This capital raise follows a series of developments including mining approvals and joint venture agreements that position Redcastle on the cusp of transitioning from exploration to production. The company’s recent progress, such as securing mining development approvals and commencing blast hole drilling, complements this funding initiative, which will underpin ongoing mine readiness and resource expansion efforts.