Ready to rumble: WA explorer drafts in Wilsons for placement

afr.com:

ASX-listed base and precious metal explorer Rumble Resources has drafted in Wilsons for a $10 million capital raising to fund exploration, Street Talk understands.

Base metal explorer Rumble Resources’ had its brokers drumming up bids on Thursday morning. Ryan Stuart

Rumble, which is capitalised at $110 million, owns a portfolio of projects in Western Australia including its Earaheedy zinc-lead project in the centre of the state which it holds with Zenith Minerals, and the Lamil Gold-Copper JV project in the east Pilbara. It last reported $4.2 million in cash on hand.

The raise is structured as an institutional placement to raise $7 million and a non-underwritten security purchase for existing shareholders, seeking to raise an additional $3 million.

Shares were being offered at 13¢ apiece, a 20.6 per cent discount to the last close price of 17¢ and a 22.1 per cent discount to the 10-day volume-weighted average price.

Proceeds will be used for exploration drilling, initial scoping studies and capital expenditure, according to a term sheet seen by Street Talk.

Rumble last raised equity in April 2021 when it tapped the market for $30 million in fresh capital to fund its exploration program at Earaheedy. Shares have fallen 37 per cent over the past year.

Bids are due by 11 am on Friday.