Rackla Metals Inc. (RAK:TSX.V) announced that it has closed its previously announced non-brokered private placement financing, raising total gross proceeds of CA$3.44 million through the issuance of 16.0 million charity flow-through units at a price of CA$0.215 per unit.
Each charity flow-through unit consists of one charity flow-through common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one non-flow-through common share at an exercise price of CA$0.20 per share for a period of 12 months following the closing of the offering.
According to the company, the gross proceeds from the sale of the flow-through shares will be used to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures on or before Dec. 31, 2027. The company stated that those proceeds will be renounced in favor of purchasers with an effective date no later than Dec. 31, 2026.
Management said it currently intends to use the proceeds primarily for exploration and drilling at its Lentung tungsten property in western Northwest Territories and potentially for advancing other properties in the region.
The company paid finders' fees consisting of cash payments totaling CA$139,329 and non-transferable warrants entitling holders to purchase up to 928,856 common shares at CA$0.215 per share for a period of 12 months following closing.
Rackla also reported that it obtained a five-year Type A land-use permit from the Sahtu Land and Water Board for the Lentung project. The permit allows for the establishment of a 49-person camp, a drill-based mineral exploration program, and the repair, maintenance, and use of existing trails and access routes. The company stated that the project is now fully permitted for the 2026 exploration season.
The Lentung project is located within the Tombstone tungsten belt of western Northwest Territories, approximately 60 kilometers by road north of the past-producing Cantung tungsten mine. Rackla noted that Union Carbide Exploration Corp. conducted an exploration program on the property between 1977 and 1982 that included 26,900 meters of diamond drilling, geochemical and geophysical surveys, geological mapping, trenching, and metallurgical, engineering, economic and environmental studies.
Commenting on the permit, Chief Executive Officer Simon Ridgway said in a company news release, "Again, we are grateful for the support and feedback we received throughout the permitting process from communities across the region, including the Dehcho First Nations and Sahtu Dene and Metis, to local organizations, regional regulators and government."
He added, "Since staking Lentung during the 2025 exploration season and acquiring the full historical database compiled by Union Carbide, we have been keen to return the drills to the property and revitalize this world-renowned belt with a new wave of tungsten exploration."
2026 Lentung Program and Project Activities
In its corporate presentation, Rackla stated that its 2026 field program at Lentung has a Q2 2026 commencement. Planned activities include establishing a new 49-person camp at the site, completing 4,000 meters of diamond drilling by twinning 27 holes to confirm historical Union Carbide results and bring findings up to modern standards, and conducting 6,000 meters of reverse-circulation drilling to further define known occurrences.
Streetwise Ownership Overview*
Rackla Metals Inc. (RAK:TSX.V)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 01/10/15 | RAK | 5 | RAK | 1 |
The company also plans to undertake surface trenching to expose shallowly buried tungsten bodies and clear and repair 25 kilometers of existing roads and trails on site, along with the access trail to the Howards Pass access road.
Following the exploration season, Rackla plans to produce a National Instrument 43-101 resource calculation for the Lentung project.
Additional information provided by the company indicated that a substantial drill program was planned on high-grade targets at Lentung and that an updated NI 43-101 resource was targeted by year-end. Rackla also stated that it planned to establish the cost and viability of re-establishing the mine at Cantung and continue developing working relationships with First Nations groups in the region.
Ownership and Share Structure1
Rackla Metals Inc. has a market cap of CA$24.93 million, with 166.45 million shares outstanding. The company has a 52-week range of CA$0.08-CA$1.00.
Institutions hold 0.23% of shares, while Management & Insiders own 27.64%. The rest are in Retail.
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- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
