Red Metal (ASX:RDM) is raising AU$2 million via a share purchase plan to fund a range of drilling activities over the next month, according to a Tuesday filing with the Australian bourse.

The share purchase plan has an issue price of AU$0.10 per share, with an option to go below or above the capital raise target. It will open on Oct. 7 and conclude on Oct. 18.

Proceeds, along with existing cash, will be used to fund drilling programs at the Gidyea and Lawn Hill projects, as well as infill resource definition drilling and further metallurgical test work on the mineral explorer's Sybella rare earths discovery in Northwest Queensland, the filing said.

The company's shares were up almost 5% in recent Wednesday trade.

Price (AUD): $0.12, Change: $+0.01, Percent Change: +4.55%