Rackla Metals raising up to $3.44 million for tungsten drilling
Rackla Metals Inc. [RAK-TSXV] said Wednesday it is planning to complete a non-brokered private placement financing to raise up to $3.44 million. The company said management intends to use the proceeds primarily for conducting exploration and drilling on the company’s Lentung tungsten property which is located within the Tombstone Gold Belt in western Northwest Territories, and to advance other properties in the region.
Rackla’s plans for its 2026 program on the property are to complete 10,000 metres of drilling with approximately half of that amount directed towards confirming historical resources.
Under the terms of the offering, the company plans to issue up to 16 million charity flow-through units (CFT) priced at 21.5 cents per unit. The offering has been structured to capitalize on the LIFE exemption whereby common shares issued under the exemption will be freely tradeable listed equity securities not subject to any hold period.
Each CFT Unit will consist of one charity flow-through common share that will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada), and one half of one common share purchase warrant. Each warrant will entitle the holder to acquire one non-flow-through common share at an exercise price of 20 cents per warrant share for 12 months after closing.
Rackla shares were active on the news, easing 3.03% or $0.005 to 16 cents. The shares trade in a 52-week range of $1.00 and $0.08.
Rackla recently released an update on data compilation for the recently acquired Lentung property. It was acquired by staking in late 2025 and covers 19,600 hectares, now owned 100% by Rackla.
The company said it has completed the compilation and digitization of extensive historical datasets, including drilling, assays and technical studies. It said historical work by Union Carbide includes 26,900 metres of drilling across 178 holes, identifying 15 tungsten occurrences over a 15-metre strike length, highlighting significant scale and upside.
Historical internal resource and feasibility work indicate robust economics, including average mill grades of 1.14% W03, and strong recovery assumptions. The deposit ranks among the highest-grade tungsten skarn systems globally and is located in close proximity to the world-class Cantung and Mactung tungsten deposits.
The results of Union Carbide’s work prompted the company to prepare an internal feasibility study that envisioned an open pit mine with mill throughput of 325 tonnes per day operating 365 days per year.
Early in 1982, Union Carbide submitted the project for Federal Environment Assessment and Review Process, seeking a mine permit. However, due to declining tungsten prices, the company withdrew the application and paused all activities on the site.
However, more recently, Chinese export restrictions combined with rising military spending has sent the price of tungsten soaring, a move that has kicked off a race to develop new sources of tungsten in North America.