28/04/2021 - 15:30

Rumble secures $40m for zinc-lead project

28/04/2021 - 15:30

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Rumble Resources is set to fast-tack exploration across its Earaheedy zinc-lead discovery in WA, using $40.2 million raised from a share placement.

Rumble secures $40m for zinc-lead project
Rumble is planning to fast-track exploration at its Earaheedy zinc-lead project in WA. Photo: Rumble Resources

Rumble Resources is set to fast-tack exploration across its Earaheedy zinc-lead discovery in Western Australia, using $40.2 million raised from a share placement.

In the coming weeks, Rumble plans to scale up diamond core and reverse circulation drilling at the Earaheedy site, located 110 kilometres north of Wiluna.

The company said it would also begin initial metallurgical testwork and other studies.

Rumble owns 75 per cent of the project while Zenith Minerals has the remaining 25 per cent stake.

Zenith’s interest in the Earaheedy project will be free carried until the completion of a bankable feasibility study.

Both companies closed up on Wednesday, with Rumble shares trading 24 per cent higher to 68 cents and Zenith shares up 8.5 per cent to 32 cents.

Rumble managing director Shane Sikora said the placement was well-supported by major institutions and well-known sophisticated investors.

“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 at the Earaheedy project,” Mr Sikora said.

He noted Rumble would also be well funded to advance its other projects, which include the Western Queen and Fraser Range gold projects in WA.

A total of 80.4 million shares will be issued in two tranches under the placement, which is priced at 50 cents and represents about a 7 per cent discount to Rumble’s last closing price (April 23).

Ashanti Capital and Bell Potter Securities are acting as joint lead managers to the raising.

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