Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) is set to raise up to $11.1 million through a strongly supported $8.1 million placement, supplemented by up to $3 million in share purchase plan (SPP) with funds to continue to advance its aims at the Earaheedy Zinc-Lead-Silver Project in Western Australia.
Funds will be used for the following at the project, which is 110 kilometres north of Wiluna:
- Drilling - discovery and expansion of near-surface open pittable deposits;
- Drilling - targeting high-grade MVT deposits at depth;
- Drilling - DMS/ore sorting/Flotation test work and updated mineral resource estimate;
- Project evaluation – DMS/ore sorting and initial scoping studies.
“The company is pleased at the support level of current shareholders and welcomes new institutional and sophisticated investors to the register," RTR managing director Shane Sikora said.
“The company is well funded to continue to advance the Earaheedy Project. The upcoming phases of drilling will focus on resource extensions and new discoveries, whilst DMS/ore sorting and initial scoping studies will occur in parallel with the exploration campaign.”
“The sheer scale, optionality, location and extraordinary growth potential of Earaheedy could see the project stamp itself as a world-class, multi-decade asset and play a key role in the global renewable energy transition.”
Placement shares
RTR will issue approximately 54,618,529 of the placement shares around Friday, August 18, 2023, and 2,962,963 placement shares ($400,000) are anticipated to be allotted in approximately four weeks.
The 2,418,519 placement shares to be issued to the directors are subject to the receipt of shareholder approval, which is intended to be sought in September 2023.
SPP details
The SPP will provide eligible shareholders with the opportunity to increase their holding by up to $30,000 of new shares at the same offer price as the placement without incurring any brokerage or transaction costs.
Rumble reserves the right to increase the size of the SPP or to scale back applications at its absolute discretion.
SPP application forms and payments need to be received by Rumble’s share registry by no later than 5pm (AEST) on Thursday, August 31, 2023.
The company has applied to ASX for a waiver of Listing Rules 7.1 and 10.11 to permit the SPP to be undertaken at a discount greater than 20% of the 5-day VWAP. If the waivers are not granted, the SPP will be conditional on shareholder approval.