Rackla raises $3.65 million for NWT tungsten drilling
Rackla Metals Inc. [RAK-TSXV] said Thursday it has closed a previously announced non-brokered private placement financing that generated gross proceeds of $3.65 million. The company said it intends to use the proceeds of the offering for exploration and drilling on the Lentung tungsten-rare earth element property in western Northwest Territories.
Under the terms of the offering, Rackla issued 10 million flow-through share units priced at $0.365 per unit. Each unit consists of one flow-through common share that will qualify as a flow-through share within the meaning of the Income Tax Act (Canada), and one common share purchase warrant. Each warrant entitles the holder to acquire one non-flow-through common share at an exercise price of $0.365 for two years after closing.
Rackla Metals shares advanced on the news, rising 1.9% or $0.005 to 27 cents. The shares trade in a 52-week range of 88 cents and $0.08.
The Lentung project is located within the Tombstone Tungsten Belt of the western Northwest Territories, approximately 127 kilometres south of the Mactung tungsten deposit and approximately 60 kilometres by road north of the past-producing Cantung tungsten mine.
In a press release on August 26, 2026, Rackla said a second drill rig has commenced drilling at its Lentung project. It said the reverse circulation rig has begun a planned 6,000-metre drill program, complementing the diamond drilling program underway. Together the two rigs are expected to complete approximately 10,000 metres of drilling during the 2026 exploration season.
The RC program will initially focus on infill and expansion drilling within the Central Zone, where Union Carbide completed the majority of its historic drilling between 1977 and 1982. Most RC holes will test near-surface mineralization, generally at depths of less than 70 metres.
The company said the RC rig would also test additional targets elsewhere on the property that have received limited historic drilling and/or display geophysical signatures considered prospective for tungsten skarn mineralization.
In a subsequent press release on September 17, 2026, Rackla said it had completed over 2,000 metres of diamond drilling and 277 metres of reverse circulation drilling (five holes) with assays pendinig. Based upon visual observation, the company said it appears that all holes to date have intersected scheelite mineralization as identified using shortwave ultraviolet light and the fluorescent properties of scheelite.
Results from the 2026 drilling program, together with data from approximately 26,900 metres of historic Union Carbide drilling, will be incorporated into the geological model being developed to support a modern mineral resource estimate anticipated in the first quarter of 2027.
Results from the initial holes are expected to be received in the next couple of weeks and the aim is to have a steady flow of results from then on, the company said. Meanwhile, the company has launched a high-resolution magnetic and radiometric airborne survey across the 155 square kilometre project. The survey expands upon a successful drone-based magnetic pilot survey completed over the main Lentung mineralized zones in July.