Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) is set to enhance its project pipeline through a capital raising initiative aimed at generating up to A$4 million.
Firm commitments
The effort consists of an institutional placement that has secured firm commitments of around A$1.1 million, supported by both existing and new institutional investors, alongside a rights issue aiming to garner an additional A$2.9 million.
The placement and a pro-rata non-renounceable entitlement offer will fund developments in Rumble’s diverse asset portfolio.
These include metallurgical studies at the Earaheedy Project, drilling at the Western Queen Project and various exploratory activities at the Wardawarra Project.
Managing director and CEO Peter Harold expressed satisfaction with the backing for the placement, highlighting the significance of the asset base.
“It was pleasing to see support for the placement which demonstrates the interest in our unique asset base including the potentially world class Earaheedy zinc-lead-silver project, the Western Queen gold project, the Wardawarra lithium project and our other earlier stage gold, copper and base metal exploration projects in Western Australia," he said.
Advancing the portfolio
“The placement funds together with the funds from the entitlement offer will enable us to advance these 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.”
The funds from both the placement and the entitlement offer are expected to significantly advance these projects and add value for shareholders.
The offer price per new share issued under both the placement and the entitlement offer has been set at A$0.04.
Shares issued will rank equally with the existing securities, and Rumble aims to have these new shares quoted on the ASX. Wilsons Corporate Finance Limited has been appointed as the lead manager for the capital raising.
About Rumble
Rumble Resources is an Australian-based exploration company listed on the ASX since July 2011 that has been recognised for its capability to identify significant orebodies, such as its discovery at the Earaheedy Project.
The company continues to seek notable mineral acquisition opportunities both in Australia and internationally.