Rumble Resources raises $7m to unlock Western Queen potential

Rumble Resources receives firm commitments for approximately $7.1 million via a two-tranche institutional placement
Strategic investor, Bain Resources Holdings, and its associates, shows continued support for the company and its assets
Rumble will emerge with about $8m (after costs) to advance its Western Queen gold and zinc-lead-silver Earaheedy projects

Special Report: Investors have demonstrated strong support for Rumble Resources’ multi-commodity growth strategy with the company receiving firm commitments for a $7.1 million institutional placement.

The two-tranche placement led by Canaccord Genuity and MST Financial Services was backed by existing and new institutional and sophisticated investors.

Among those was Bain Resources Holdings (BRH), and its associates, which have subscribed for $1.6 million in the placement.

That follows BRH, which is associated with the large Indian mining contractor BGR Mining and Infra Limited, taking a $1 million strategic investment in Rumble Resources (ASX:RTR) just over a month ago.

Rumble will now have $8 million to advance its assets in well-serviced mining regions of Western Australia.

Right royal growth opportunity

A significant portion of the funds will go towards the Western Queen Gold Project, where the Mineral Resource Estimate (MRE) has just been upgraded to 4.42 million tonnes (Mt) at 2.02 grams per tonne (g/t) for 286,600oz.

Already planned for this month is a 20,000m reverse circulation/diamond drilling program to test underexplored areas with the aim to further boost the latest MRE.

On releasing the 76% uplift in contained ounces on the 2021 MRE at Western Queen on October 15, Rumble said it believed there was strong potential for more resource growth, with mineralisation open along strike and at depth.

Historical mining at the project produced 880,000t at a high-grade average of 7.6 grams per tonne (g/t) gold for 215,000 oz.

Rumble will also progress the Western Queen South open pit mining to Final Investment Decision.

Also at Western Queen Rumble will carry out tungsten assaying and a maiden resource estimate after the surprise significant discovery of the critical mineral at the Mid-West project.

The emerging miner’s focus on Western Queen comes as the gold price continues to reach new highs, now up more than 30% this year to a record high of $US2,792 an ounce.

Western Queen is conveniently located within a 100km radius of three gold processing facilities, the closest only 48km away.

Rumble is also progressing its Earaheedy zinc-lead silver project, which has an inferred resource of 2.2 million tonnes of zinc, 700,000 tonnes of lead and 12.6 million ounces of silver – and potential to be a large-scale, open-pit mining and processing operation.

‘Major drilling’ to follow

Managing director and CEO, Peter Harold said: “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.

“The placement 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, for the internal scoping study on our potentially world class Earaheedy zinc/lead/silver project, the costs of this placement and for general corporate expenses.”

The placement comprises approximately 157.4 million new shares priced at $0.045 per share – a 19.6% discount to last closing price of $0.056 and a 6.3% discount to the 30-day volume-weighted average price (VWAP) of $0.0481 as on October 29.

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.