Zinc hunter Rumble Resources (ASX:RTR) has secured a $1 million investment from a company linked to a large Indian mining contractor.
The company revealed on Friday (27 September) that Bain Resources Holdings had agreed to subscribe for 25 million shares at $0.04 each.
Bain Resources is associated with Hyderabad-headquartered BGR Mining and Infra, which has executed deals for over 50 projects and has an order book of close to US$11 billion ($16 billion).
Rumble Managing Director Peter Harold says BGR has been keen to expand its activities outside of India.
“BGR are particularly interested in our Western Queen Gold Project for its near-term cash flow and resource growth potential,” he says.
Western Queen is covered by a mining lease and hosts existing resources of 163,000 ounces averaging 2.4 grams per tonne (g/t) gold. Historically it produced 880,000 tonnes at 7.6g/t for 215,000 ounces.
“BGR are also interested in our Earaheedy zinc-lead-silver project, given the size of the inferred resource – 2.2 million tonnes zinc, 700,000 tonnes lead and 12.6 million ounces silver – and the potential for it to be a large-scale, open pit mining and processing operation in the future,” Harold adds.
Rumble has a market capitalisation of $28.7 million.
Shares spiked over 30% following the news to an intra-day high of $0.050, with 6.2 million shares changing hands.
Meanwhile, uranium explorer Cauldron Energy (ASX:CXU) has received firm commitments from sophisticated and professional investors to raise $2 million via a placement at $0.018 per share.
The company, which has a market capitalisation of $30.9 million, has also locked in an underwriting agreement to raise a further $2 million at the same price by way of an entitlement offer.
Cauldron is undertaking drilling at its Yanrey Uranium Project, which includes the Bennet Well deposit, hosting a resource of 38.9 million tonnes @ 360 parts per million for 30.9 million pounds of uranium oxide.
The explorer says this makes Yanrey one of the largest deposits in Western Australia, which currently has in place a ban on mining, but allows exploration.
Shares fell 20% to an intra-day low of $0.02 following the news.
Copper-gold explorer FireFly Metals (ASX:FFM) says it too has received firm commitments to raise capital, but for the much larger sum of $65 million at an issue price of $0.95 per share.
The single tranche placement will be to institutional investors, with “several large existing and new Australian and international institutions participating”, FireFly says.
The company is also undertaking a non-underwritten share purchase plan (SPP) to raise an additional $5 million.
FireFly says the cash raised will be allocated to the next phase of resource growth, discovery and pre-development works at its Green Bay Copper-Gold Project in Canada.
A further 100,000m of resource extension, in-fill, downhole electromagnetics discovery and regional drilling is planned.
FireFly, which has a market capitalisation of $485.5 million, currently has four drill rigs operating at Green Bay and expects to release an updated JORC-compliant resource in October.
Molybdenum and high-purity quartz explorer Taiton Resources (ASX:T88) is tapping sophisticated and professional investors for $4.5 million.
The junior, which has a market capitalisation of just under $11 million, is offering up to 30 million new shares at $0.15 each.
The cash will be used to continue advancing its Challenger West Gold and Highway Polymetallic projects in South Australia and the Kingsgate Molybdenum and High-Purity Quartz Project in New South Wales.
Write to Angela East at Mining.com.au
Images: Rumble Resources & FireFly Metals
