Capital Raising Overview of Rumble Resources Limited

At the time of writing, Rumble Resources Limited (ASX: RTR) has announced a capital raising initiative aiming to secure up to approximately A$7.1 million through the issuance of up to 157.4 million fully paid ordinary shares, referred to as “New Shares.” This capital raise will occur through a placement directed at sophisticated, strategic, and institutional investors.

Placement Details

The placement will be executed in two tranches:

1. Tranche 1: This tranche involves the issuance of approximately 121.6 million New Shares, projected to raise around A$5.5 million. The shares issued under Tranche 1 will leverage the company’s existing placement capacity as per ASX Listing Rules 7.1 and 7.1A.
2. Tranche 2: This tranche will consist of around 35.8 million New Shares aimed at raising approximately A$1.6 million. Notably, Tranche 2 will include participation from Bain Resources Holdings and its affiliates. Approval from shareholders is required for this tranche, which is to be sought at Rumble Resources’ Annual General Meeting scheduled for November 28, 2024. An addendum to the Notice of AGM, released on October 28, 2024, will be issued to incorporate an additional resolution seeking approval for Tranche 2.

Offer Price

The New Shares will be offered at a price of A$0.045 per share, which represents:

• A 19.6% discount compared to the last closing price of A$0.056 on October 29, 2024.
• A 6.3% discount to the 30-day volume-weighted average price (VWAP) of A$0.0481.

Cornerstone Investment

A significant aspect of this capital raising is the strategic cornerstone investment from Bain Resources Holdings and its associates, who will contribute approximately A$1.6 million into the placement.

Use of Funds

The funds raised will be utilized for several critical purposes, including:

• Gold Discovery: Funding exploration at the Western Queen project to expand gold resources through an initial 20,000 meters of reverse circulation (RC) and diamond drilling.
• Pathway to Production: Advancing the Western Queen South open pit towards a final investment decision (FID).
• Project Progression: Supporting other projects within the portfolio, including the Earaheedy zinc/lead/silver project.
• Working Capital: Covering operational costs and the costs associated with the capital raising initiative.

Timetable

The indicative timetable for the capital raising is as follows:

• Trading Halt: October 30, 2024
• Settlement of New Shares (Tranche 1): November 7, 2024
• Allotment of New Shares (Tranche 1): November 8, 2024
• Annual General Meeting for Tranche 2 Approval: November 28, 2024
• Expected Settlement of New Shares (Tranche 2): December 4, 2024
• Expected Allotment of New Shares (Tranche 2): One business day after settlement.

Conclusion

Rumble Resources Limited (ASX: RTR) is strategically positioning itself for growth through this capital raising initiative. The planned funding will not only enhance its exploration capabilities but also pave the way towards production at its promising projects. As the company moves forward, it aims to deliver significant shareholder value through successful resource discoveries and development.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com