Rumble Resources Welcomes Strategic Investment from Bain Resources Holdings
RUMBLE RESOURCES LIMITED (RTR) Share Update September 2024 Thursday 26th
Rumble Resources Secures Strategic Investment from Bain Resources Holdings
Rumble Resources Limited (ASX: RTR) has announced a significant investment from Bain Resources Holdings, marking a major milestone in the company's growth strategy.
Instant Summary:
- Bain Resources Holdings, associated with BGR Mining & Infra Limited, invests $1 million in Rumble Resources.
- 25 million shares subscribed at 4 cents per share.
- BGR Mining & Infra Limited aims to expand its activities outside of India.
- Focus on Western Queen gold project and Earaheedy zinc-lead-silver project.
Investment Details
Rumble Resources Limited (ASX: RTR) has entered into a Subscription Agreement with Bain Resources Holdings Ltd (BRH), an associate of BGR Mining & Infra Limited (BGR), one of India's largest mining contractors. Under the agreement, BRH will subscribe for 25 million shares in Rumble at 4 cents per share, totaling an investment of $1 million.
The new shares will be issued under Rumble's existing placement capacity under ASX Listing Rule 7.1 and will rank equally with existing securities on issue. The company will seek quotation of the new shares on the ASX. Notably, no broker or advisor was involved in this placement.
About BGR Mining & Infra Limited
BGR Mining & Infra Limited, headquartered in Hyderabad, India, was founded in 1988 and has grown to become a major player in the Indian mining industry. With over 50 projects executed and an order book close to US$11 billion, BGR integrates modern operation technologies for safer and more productive mines.
BGR is keen to expand its activities globally, and this investment in Rumble Resources marks a significant step in that direction. The company is particularly interested in Rumble's Western Queen gold project and the Earaheedy zinc-lead-silver project.
Project Highlights
The Western Queen gold project, located on a mining lease, has existing resources of 163,000 ounces averaging 2.4g/t and historical production of 880,000 tonnes at 7.6g/t for 215,000 ounces. The project offers near-term cash flow and resource growth potential.
The Earaheedy zinc-lead-silver project has an inferred resource of 2.2 million tonnes of zinc, 700,000 tonnes of lead, and 12.6 million ounces of silver. The project's potential for large-scale, open-pit mining and processing operations makes it an attractive investment for BGR.
This strategic investment from Bain Resources Holdings is expected to bolster Rumble Resources' financial position and accelerate the development of its key projects. The involvement of a major player like BGR Mining & Infra Limited adds credibility and opens up new opportunities for collaboration and growth.
Investors may view this investment as a positive signal, potentially leading to increased confidence in Rumble's future prospects. The focus on projects with near-term cash flow and significant resource potential could drive stock price appreciation.
Investor Reaction:
Analysts are likely to react positively to the news, given BGR's reputation and the strategic nature of the investment. The emphasis on the Western Queen and Earaheedy projects aligns with Rumble's growth strategy, and the additional capital will support ongoing exploration and development efforts.
Conclusion:
Rumble Resources' partnership with Bain Resources Holdings marks a pivotal moment for the company. Investors should keep an eye on the progress of the Western Queen and Earaheedy projects, as well as any further strategic developments. This investment underscores the potential for significant growth and value creation in the near future.