PERTH (miningweekly.com) – ASX-listed Rumble Resources will raise A$40-million through a share placement to fast-track exploration at its Earaheedy zinc/lead discovery, in Western Australia.
The company on Wednesday announced that it has received firm commitments from institutional and sophisticated investors for the placement of 80.4-million shares at a price of 50c each.
The placement will settle in two tranches, with the first 78.4-million shares to be issued under Rumble’s existing placement capacity, while the second tranche of 2-million shares would be subject to shareholder approval.
Rumble told shareholders that funds raised would be used to fast-track work at Earaheedy, providing the company with the resources to fully scope the major discovery, including significantly scaled-up diamond core and reverse circulation drilling, which will start over the coming weeks, as well as to begin initial metallurgical test work and other studies.
“We see the strong support from the placement as vindication of the company’s pipeline of projects strategy, with a number of years of systematically advancing a number of exciting projects which led to the major discovery of the Earaheedy project,” said Rumble MD Shane Sikora.
“The company looks forward to rapidly advancing the major discovery and advancing the company’s other projects, which also have a Tier 1 potential.”