$10m Farm Out of Lamil Project in the Paterson Province
Perth, July 22, 2019 AEST (ABN Newswire) - Rumble Resources Ltd (
ASX:RTR)(20Z:FRA) is pleased to announce that it has entered into an earn-in and exploration joint venture agreement ("Agreement") with AIC Mines Limited (ASX:A1M) ("AIC") in respect of the Lamil Project, located in between the major mining operations of the Nifty Cu mine and the large Telfer Au-Cu mine within the Paterson Province, East Pilbara, Western Australia.
Rumble received interest from a large number of parties on the Lamil Project due to its Tier 1 jurisdiction, recent significant discoveries in the region by Rio Tinto Limited (Winu CU-Au Discovery) and Greatland Gold plc (Havieron gold-copper discovery), its favourable location and shallow first order targets that remain untested.
Rumble completed a very competitive JV process for the Lamil Project and carefully considered all aspects of the proposals received to ensure maximum benefit to Rumble shareholders. As a result of the process undertaken, Rumble identified AIC as the ideal strategic partner that has not only the right technical capability and funding to complete significant exploration on the Lamil Project but also has substantial experience in project development. The resultant cross shareholding provides further leverage to the developing relationship between both companies.
The key terms of the Agreement are as follows:
Stage 1 Earn-in
- AIC will subscribe for 4,166,667 new shares in Rumble at a price of 6 cents per share for total proceeds of $250,000.
- AIC can earn a 50% interest by issuing to Rumble 714,286 new shares in AIC for nil cash consideration and spending $6 million over 4 years.
- Upon meeting these requirements and acquiring a 50% interest:
o AIC will subscribe for a further $250,000 worth of new Rumble shares; and
o AIC will issue to Rumble an additional $250,000 worth of new shares in AIC for nil cash consideration.
o Rumble has the option to start contributing to the JV 50/50 with AIC at the end of Stage 1. If Rumble does not elect to contribute, then AIC may enter Stage 2 of the earn-in.
Stage 2 Earn-in
- AIC can earn a further 15% by spending $4 million over 1 year.
This agreement with AIC follows on from the ongoing successful joint venture that Rumble has with strategic partner Independence Group NL (ASX:IGO) at its Fraser Range projects (refer ASX announcement 1 July 2019 in respect of identification of significant high grade gold mineralisation), which highlights the success that can be achieved with key partners in Tier 1 jurisdictions.
Rumble looks forward to working collaboratively with AIC to advance the Lamil Project. Please refer enclosed ASX announcement from AIC that provides further detail in respect of the Agreement and the Lamil Project.
About IGO Ltd
IGO Limited (ASX:IGO) is a leading ASX-listed exploration and mining company with a strategic focus on high quality assets of scale and longevity, and an evolving strategy to align the business to the structural shift to energy storage.
About Rumble Resources Ltd
Rumble Resources Limited (ASX:RTR) (FRA:20Z) is an Australian based exploration company, officially admitted to the ASX on the 1st July 2011. Rumble was established with the aim of adding significant value to its current gold and base metal assets and will continue to look at mineral acquisition opportunities both in Australia and abroad.
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