Rumble Resources inks $1.5m Fraser Range joint venture deal
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Rumble Resources has entered a $1.5 million joint venture deal with base metal and gold miner Independence Group over its highly prospective Fraser Range projects in Western Australia.
Despite the news, the Perth-based stock (ASX:RTR) fell 17 per cent to 6c yesterday after earlier hitting 7.6c with 2.3 million shares changing hands.
Meantime, Independence Group (ASX:IGO) gained 3 per cent to $3.57 with 2.1 million shares traded.
Independence can earn a 70 per cent stake in Rumble’s Fraser Range project by spending $1.5 million on exploration over three years.
Rumble will benefit from Independence’s expertise in the Fraser Range region where it owns the Nova nickel-copper mine and a 30 per cent stake in the Tropicana gold project.
Rumble will maintain exposure to the project without having to spend any more on exploration and development of Fraser Range.
Under the deal, Rumble is free-carried through to completion of a pre-feasibility study on any of the tenements.
Rumble will now focus on its high-grade lead-zinc Braeside project in the Pilbara.
Rumble has a market cap of around $17 million.