Why Recharge Metals (ASX:REC) is raising $4.1 million to fund gold and tungsten exploration in Western Australia

Sonal Goyal

15 October 2026 10:45 PM AEDT

Why Recharge Metals (ASX:REC) is raising $4.1 million to fund gold and tungsten exploration in Western Australia

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Recharge will issue 114,722,222 shares at $0.036 each, a discount of about 2.5 per cent to the 10-day VWAP before the trading halt.
Pro-forma cash after the Placement is expected to be about $8 million.
Proceeds will help accelerate an inaugural 30,000 metre drilling program at Sunset Well, planned to start in October 2026.

Recharge Metals Limited (ASX:REC), an explorer with gold and copper-tungsten projects in Western Australia, has announced a placement to professional and sophisticated investors that raises $4.1 million before costs. The company says the funds will accelerate drilling at its Sunset Well gold project near Leonora and work at its Brandy Hill South copper-tungsten project near Geraldton. Shares returned to trading on 15 October 2026, following a Trading halt on 13 October, and the company describes the raising as strongly supported.

Terms of the placement

Recharge will issue 114,722,222 new fully paid ordinary shares at $0.036 each, which the company says represents a discount of about 2.5 per cent to the 10-day Volume weighted average price before the trading halt. The shares will rank equally with existing shares. The issue uses the company's existing placement capacity under ASX Listing Rule 7.1, and the announcement does not mention options, tranches or a separate Shareholder vote.

Canaccord Genuity (Australia) Limited and Ord Minnett Limited are acting as joint lead managers. The announcement states that they may earn up to 5 per cent commission on the proceeds. After the placement, Recharge expects pro-forma cash of about $8 million.

Indicative timetable

The company lists settlement as Wednesday 21 October 2026, with allotment and normal trading of the new shares on Thursday 22 October 2026. It describes the dates as indicative and subject to change.

How the money will be used

Recharge says proceeds will be applied to several areas. The first is the 94.5 thousand ounce Prospero deposit and the wider Prospero Trend at Sunset Well. The deposit is an Inferred Mineral Resource estimate of 2.87 million tonnes at 1.0 gram per tonne gold, reported at a cut-off grade of 0.5 grams per tonne gold. Funds will go towards permitting, heritage surveys and drilling at the Ironstone Well area, at the northern end of the Prospero Trend.

The second area is Brandy Hill South, where the company plans tungsten re-assays and the start of metallurgical test work, as well as aircore drilling. The remaining money will fund the technical team's work on early-stage exploration targets.

The Sunset Well drilling program

The announcement says the Capital will help Recharge accelerate an inaugural 30,000 metre drilling program at Sunset Well, with drilling planned to start in October 2026. The company has not provided drilling results in this announcement, and the planned program is a statement of intent rather than a completed activity.

Conditions and risks

The raising consists of firm commitments, but the placement is not complete until settlement and allotment occur. The timetable is indicative and may change. The resource at Prospero is classified as Inferred, which means the geological confidence is lower than for Indicated or Measured categories, and further drilling may or may not upgrade or extend it. The Brandy Hill South work is at an early stage, with tungsten re-assays and metallurgical test work still to be undertaken, so there is no confirmed development pathway for that project in the announcement.

The new shares will increase the number of Recharge shares on issue by 114,722,222, which will dilute existing holders who do not participate. The company has not given any production or financial forecasts in the announcement, and the commercial value of the planned exploration depends on drilling outcomes that are not yet known.

Confirmed next milestones

The dated milestones in the announcement are settlement on 21 October 2026, allotment and normal trading on 22 October 2026, and the planned start of drilling at Sunset Well in October 2026. Later milestones, including permitting and heritage surveys at Ironstone Well, aircore drilling and tungsten metallurgical work at Brandy Hill South, are not given specific dates.

FAQs

Q: How much is Recharge Metals raising?

A: Recharge secured firm commitments for a placement raising $4.1 million before costs, through 114,722,222 new fully paid ordinary shares at $0.036 each. Canaccord Genuity and Ord Minnett are joint lead managers.

Q: What will the funds be used for?

A: Proceeds will go to the Prospero deposit and Prospero Trend at Sunset Well, including permitting, heritage surveys and drilling at Ironstone Well, plus tungsten re-assays, metallurgical test work and aircore drilling at Brandy Hill South.

Q: When does the placement settle?

A: The indicative timetable has settlement on Wednesday 21 October 2026 and allotment and normal trading of the new shares on Thursday 22 October 2026. The dates are subject to change.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.