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- Rumble Resources (RTR) has received firm commitments to raise $40 million through a share placement
- The funds will go towards the zinc-lead discovery at the Earaheedy project, which is 75-per-cent owned by RTR with Zenith Minerals (ZNC) holding the remaining stake
- The two-tranche placement will be settled first with 78.4 million placement of shares and secondly with one million shares each to two non-executive directors
- Rumble also released an investor presentation today where it outlined its project strategy pipeline
- It included an update on work at Earaheedy, noting that reverse circulation assay results are expected in the next three to four weeks
- Rumble shares are 15.5 per cent higher at 63.5 cents each, while Zenith Minerals is also in the green, up 8.4 per cent at 32 cents each
Rumble Resources (RTR) has received firm commitments to raise $40 million through a share placement.
New institutional and significant investors have committed to the capital raise which will include the issue of 80.4 million new fully paid ordinary shares at 50 cents each.
The company plans to use the funds to fast track its zinc-lead discovery at its 75 per cent owned, Earaheedy Project, located north of Wiluna in Western Australia.
The major zinc-lead discovery was reported earlier this month.
RTR says the funds raised will allow a full scope of the discovery, including a scaled-up diamond core and reverse circulation drilling program, and start initial metallurgical test work and other studies.
Zenith Minerals (ZNC) holds a 25-per-cent interest in the project, and the company’s Chairman Peter Bird commented on RTR’s capital raise.
“We welcome the news that RTR are going to fast track the Earaheedy zinc discovery with an extensive accelerated exploration program underpinned by their A$40 million capital raise,” he said.
Rumble also plans to put part of the money towards its other projects with the objective to define further discoveries and fund working capital.
The placement will settle in two tranches.
Firstly, 78.4 million placement shares will be issued, with allotment expected on May 5, 2021.
Secondly, and subject to shareholder approval, two million shares will be issued to non-executive directors Matthew Banks and Michael Smith, who have each subscribed for one million shares, or $500,000, of the placement.
The company states that Ashanti Capital and Bell Potter Securities acted as joint lead managers to the placement.
Rumble also released an investor presentation today where it outlined its project strategy pipeline.
In particular, the presentation included an update of work at the Earaheedy project, noting that reverse circulation assays are expected in the next three to four weeks, diamond drilling and reverse circulation drilling is booked in and preliminary metallurgical work is planned.
Rumble shares are 15.5 per cent higher at 63.5 cents each, while Zenith Minerals is also in the green, up 8.4 per cent at 32 cents each at 11:33 am AEST.
