13/02/2014 - 08:03

Rumble signs into Blackham nickel-copper project

13/02/2014 - 08:03

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Perth-based Rumble Resources has signed an earn-in agreement with Blackham Resources for the acquisition of up to 75 per cent of the Zanthus project inside the Albany Fraser Tectonic Zone in the State’s south west.

Rumble signs into Blackham nickel-copper project

Perth-based Rumble Resources has signed an earn-in agreement with Blackham Resources for the acquisition of up to 75 per cent of the Zanthus project inside the Albany Fraser Tectonic Zone in the State’s south west.

The project is located 18 kilometres east of Sirius Resources’ Nova nickel-copper-sulphide discovery and will increase Rumble’s footprint in the Fraser Range by 87 per cent.

Rumble will initially acquire a 20 per cent interest by issuing Blackham 2 million shares, with the possibility of obtaining up to 50 per cent interest with exploration-expenditure of $1 million over the first two years.

At that point, Rumble will pay Blackham $250,000 with 30 per cent in cash and 70 per cent as Rumble shares.

The final stage of up to 75 per cent will see Rumble spend an additional $1.5 million during the third and fourth years and paying an additional $500,000 to Blackham, again in 30 per cent cash and 70 per cent shares.

On February 7, Rumble announced the discovery of large bedrock EM conductors in the Fraser Range, whilst Blackham’s driulling indicated Proterozoic basement rocks present between 20 metres and 55 metres from the surface.

Rumble will initially commence geophysics test lines to find the most effective techniques to utilise the area.

“Rumble is excited about the acquisition and what this might lead to for Rumble shareholders,” Rumble chief executive Shane Sikora said.

“This region is fast becoming the world’s most exciting emerging nickel province.

“Due to the current ground position, Rumble has now stamped itself as a major player in the Fraser Range,” Mr Sikora said.

Blackham said the deal will allow the company to concentrate on maximising the value of its Matilda gold project and recent acquisition of the Wiluna gold project, processing plant and infrastructure.

Shares in Rumble are unchanged trading at 3 cents per share, while Blackham shares are trading at 19.5 cents per share, as of 8am, WST.

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