Rumble Resources Targets $9M Total Capital Raise Including $7M Placement and $2M Entitlement Offer
Rumble Resources Limited has launched a $2 million non-renounceable entitlement offer following a $7 million placement, aiming to fund exploration and development activities at its Western Queen Gold Project. The offer opens on 16 September and closes on 26 September 2025.
- Non-renounceable entitlement offer to raise approximately $2 million
- Offer price set at $0.025 per new share with a 1-for-12 entitlement ratio
- Follow-up to a $7 million placement to institutional and sophisticated investors
- Funds allocated primarily to Western Queen gold drilling, tungsten metallurgical work, and general working capital
- Directors and substantial shareholders intend to participate; shareholder approval sought for part of placement
Capital Raising Strategy
Rumble Resources Limited (ASX, RTR) has announced a non-renounceable pro-rata entitlement offer to raise approximately $2 million, priced at 2.5 cents per new share. This offer follows a recent $7 million placement to institutional and sophisticated investors, marking a significant capital injection aimed at advancing the company’s flagship Western Queen Gold Project in Western Australia.
The entitlement offer allows eligible shareholders to subscribe for one new share for every twelve shares held as of the record date, with fractional entitlements rounded up. The offer opens on 16 September 2025 and closes on 26 September 2025, providing shareholders a limited window to participate in the company’s next phase of development.
Use of Funds and Project Focus
Proceeds from the entitlement offer, combined with the placement funds, will be directed primarily towards extensional and infill drilling at Western Queen, mining studies, and pre-development activities. Additionally, a portion of the capital will support metallurgical test work on the Western Queen tungsten project and other regional initiatives. General working capital and offer-related expenses will also be covered.
The company’s board believes the capital raising will provide sufficient working capital to meet near-term exploration and development objectives. However, it acknowledges that further funding will likely be necessary to complete feasibility studies and fully develop the Western Queen project or other assets in its portfolio.
Shareholder Participation and Dilution
Directors and key shareholders, including Managing Director Peter Harold and Technical Director Peter Venn, have expressed their intention to participate in the entitlement offer, signaling confidence in the company’s prospects. The offer excludes shareholders outside Australia, New Zealand, Mauritius, and Singapore, reflecting regulatory and practical considerations.
Shareholders who do not participate risk dilution of approximately 7.7% of their holdings. The company has also outlined a shortfall offer mechanism, allowing shareholders to apply for additional shares beyond their entitlement, subject to voting power limits to prevent any single shareholder from exceeding 19.9% ownership.
Risks and Market Context
Rumble Resources provides a comprehensive risk disclosure, highlighting exploration uncertainties, funding requirements, regulatory approvals, environmental considerations, and commodity price volatility as key factors that could impact future performance. The company’s shares have traded between 2.2 and 3.7 cents in the three months preceding the offer, with the last price at 3.1 cents.
Investors are reminded that the offer is speculative and should be considered in the context of the company’s development stage and the inherent risks of mineral exploration and project advancement.
Bottom Line?
As Rumble Resources pushes forward with its capital raising, the market will be watching closely to see if shareholder support translates into momentum for the Western Queen project’s next chapter.
Questions in the middle?
- Will the entitlement offer achieve full subscription given its non-renounceable nature?
- How will the company manage potential dilution if the shortfall offer is heavily subscribed?
- What are the timelines and prospects for securing further funding to advance Western Queen beyond initial drilling and studies?
