Special Report: Rumble Resources will be cashed up and able to advance its polymetallic assets in WA through the combination of the recent placement and entitlement offer at 4c that closes on 14 June.
Thanks to the ~$1.1M placement and up to ~$2.9M from the entitlement offer, the company can continue with the metallurgical test work and other studies on the potentially world class Earaheedy zinc-lead-silver project.
It will also be funded to undertake drilling on the Western Queen gold project, advance the Wardawarra lithium project and do work on their other earlier stage gold, copper and base metal exploration projects in Western Australia.
Giant zinc potential
At Earaheedy – one of the world’s largest zinc sulphide discoveries in the past decade – Rumble Resources’ (ASX:RTR) work is continuing with the metallurgical test work and scoping studies.
Preliminary test work on Earaheedy ore has already returned high recoveries and confirmed marketable concentrate grades.
With an existing resource of 94Mt with contained metal of 2.2 million tonnes (Mt) of zinc, 0.7Mt lead and 12.6Moz silver, the project has the potential to be a low unit cost, open-pit mining and processing project in the WA’s Goldfields region.
Possible near-term gold resource extensions
At Western Queen near Mt Magnet, drilling has started to test a series of open, high-grade lodes following on from the most recent reported program.
That program yielded high-grade intersections including 5m at 38.76 grams per tonne (g/t) of gold from 193m and 17m at 5.70g/t gold from 221m from Western Queen South.
Western Queen currently has a resource is 2.1Mt at 2.42g/t gold for 163,000oz of contained gold and Rumble is hopeful of growing this given the deposits are associated with a major geological zone similar to Spartan Resources’ (ASX:SPR) Never Never Lode, which has a resource of 5.16Mt at 5.74g/t gold (953,000oz).
For the Wardawarra lithium project, detailed mapping, geochemical sampling and drilling is planned to build understanding of the potential for a lithium province.
The program will follow up on Rumble’s discovery of multiple pegmatites across the project which is adjacent to Western Queen.
‘Unique asset base’
“It was pleasing to see support for the placement which demonstrates the interest in our unique asset base,” managing director Peter Harold said.
“The placement funds together with the funds from the entitlement offer will enable us to advance our projects and add value for shareholders.
“I would like to thank all those who participated in the placement for their support and trust that existing shareholders will take up their full entitlement to ensure Rumble is well funded to deliver on its stated goals.”
How the offer works
The entitlement offer opened on 24 May and will close on 14 June, with Wilsons Corporate Finance Limited as the lead manager.
The offer price of 4c per new share under the placement and 1 for 10 entitlement offer represents a 14.9% discount to the closing price of A$0.047 and a 25.2% discount to the five-day volume weighted average price (VWAP) of 5.3c on 7 May, ahead of the placement which was completed on 8-9 May.
This article was developed in collaboration with Rumble Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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