Rumble Resources Ltd (ASX:RTR, OTC:RTRFF) is using A$1 million raised in a non-renounceable pro-rata entitlement offer at an issue price of A$0.04 per share for drilling at the Western Queen Gold Project in Western Australia’s Mid-West.
The offer closed on June 14, 2024, and raised A$1,005,735.08, excluding an underwritten shortfall of A$36,000 by director Peter Venn.
All valid offers for the shortfall received from shareholders were accepted and the company has received strong interest from a number of broking firms to assist with placing the remaining shortfall.
“Delighted with response”
“The board of Rumble is delighted with the response from shareholders to the entitlement offer given the challenging equity market for small cap resource stocks in Australia," Rumble managing director and CEO Peter Harold said.
"The funds from the issue are already being put to good use with drilling at Western Queen well underway.
"We have received strong interest from numerous stockbrokers regarding the shortfall and will look to place the remainder.”
There were entitlements accepted for 13,566,665 shares totalling A$542,666.60 and a further 11,576,712 shortfall shares applied for by shareholders for A$463,068.48.
The balance of shortfall shares unallocated was 46,996,050 valued at A$1,879,842 and the company reserves the right to place these remaining shortfall shares within three months from the closing date.
READ: Rumble Resources begins drilling to test high-grade gold system at Western Queen
Western Queen drilling
Late last month the company began reverse circulation (RC) and diamond drilling to test several high-grade gold targets and follow-up historical high-grade intersections at the Western Queen South and Duke prospects of the Western Queen Project.
Very high-grade results of up to 4 metres at 49.73 g/t gold from 134 metres and 17 metres at 5.7 g/t from 221 metres were previously returned at Western Queen South and 8 metres at 26.27 g/t from 14 metres as well as 7 metres at 60.60 g/t from 70 metres at Duke.
“Warrant follow up”
“As we continue with the metallurgical test work on our Earaheedy zinc, lead, silver project we are delighted to be drilling the Western Queen Gold Project,” Harold said at the time.
“The historical gold intersections at Western Queen are some of the highest-grade gold intersections found in Western Australia today, and they warrant follow-up.
“The system at Western Queen has already produced high-grade gold with historical gold production of 190,000 ounces from ore with an average grade of 8.9 grams per tonne from the Western Queen Central Pit.
“This past production shows that the system is capable of hosting further significant high-grade orebodies.”
Rumble’s licences cover the 35 kilometres long and 3 kilometres wide, north-south trending Warda Warra greenstone belt, which is host to the Western Queen Shear Zone and remains largely underexplored.