AIC Resources has struck a deal to spend up to $10 million in cash for a majority stake in Rumble Resources’ Lamil gold-copper project in the Paterson Province.
Under the earn-in agreement , AIC will have 50 per cent stake in the project if it issues Rumble around 714,000 of its shares at no cost, and spends $6 million in cash.
At its previous closing price of 40 cents, 714,000 shares in AIC would be worth around $286,000.
To earn an additional 15 per cent stake, AIC must spend outlay an additional $4 million.
The Lamil project is located between the Nifty copper mine and Telfer gold mine, and is near Rio Tinto’s Winu copper discovery.
Rumble said it received interest from a large number of parties, given the project’s location and shallow first order targets.
“Rumble completed a very competitive JV process for the Lamil project and carefully considered all aspects of the proposals received to ensure maximum benefit to Rumble shareholders,” it stated.
“As a result of the process undertaken, Rumble identified AIC as the ideal strategic partner that has not only the right technical capability and funding to complete significant exploration on the Lamil project but also has substantial experience in project development.”
Shares in AIC were up 7.5 per cent to trade at 43 cents each at 3pm AEST, while shares in Rumble were up 10.5 per cent to trade at 6.3 cents each at 3.50pm AEST.