Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) has raised around A$7.1 million to put towards a range of work including reverse circulation (RC) and diamond drilling programs, as well as a final investment decision at the Western Queen South open pit project.
The two-tranche institutional placement attracted support from both existing and new institutional and sophisticated investors.
Notably, strategic investor Bain Resources Holdings, alongside its associates, committed A$1.6 million, underscoring their confidence in the long-term strategic value of Rumble’s projects.
Bain is associated with BGR Mining & Infra Limited (BGR), a major player in the Indian mining industry headquartered in Hyderabad, India. Founded in 1988 as an engineering contractor, BGR has grown to execute over 50 projects, with a current order book nearing US$11 billion.
BGR Mining & Infra Limited specialises in mining development and operations, focusing on open-cast coal mining and other essential projects. Its services incorporate advanced design, planning and operational technologies to enhance safety and productivity in mining operations.
BGR also addresses local community issues and integrates rest and recreational activities into its project areas, aligning with the complex demands of mining initiatives.
Following the placement, Rumble will have around A$8 million (post costs) to fund key initiatives, including:
- a 20,000-metre reverse circulation and diamond drilling exploration program at the Western Queen Gold Project;
- advancing the Western Queen South open pit project towards a Final Investment Decision (FID);
- Tungsten assay analysis and an initial resource estimate at the Western Queen project; and
- supporting general working capital and covering placement costs.
“We are delighted with the very strong interest there was to participate in this placement from our existing shareholders, our new strategic shareholder Bain Resources Holdings and their associates and the new sophisticated and institutional investors who have come on board for the first time,” managing director and CEO Peter Harold said.
“These funds will primarily be used to fund major drilling programs at Western Queen where there is a wonderful opportunity to grow the gold resources through discovery.
"The next drill program of up to 20,000 metres will kick off in the second week of November and we look forward to receiving positive results from this drilling.
"The balance of the funds from this placement will be used for further gold exploration, to advance the Western Queen South open pit towards production, to complete the internal scoping study on our potentially world class Earaheedy zinc/lead/silver project and for general corporate expenses.”
Placement illustrates project confidence
The placement consists of some 157.4 million new shares, raising around A$7.1 million at an offer price of A$0.045 per share.
This offer price reflects a 19.6% discount to the last closing price of A$0.056 on October 29, 2024 and a 6.3% discount to the 30-day volume weighted average price (VWAP) of A$0.0481 as of the same date.
The placement will proceed in two tranches:
- Tranche 1 will issue around 121.6 million new shares to raise around A$5.5 million, using the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
- Tranche 2 will issue some 35.8 million new shares, raising about A$1.6 million, with participation from Bain Resources Holdings and its associates. This tranche will be subject to shareholder approval at the AGM on 28 November 2024. An addendum to the Notice of AGM, initially released on 28 October 2024, will propose an additional resolution for the issuance of Tranche 2 shares.
This funding structure aligns with Rumble’s strategic goals and secures capital for upcoming exploration and project milestones.