Rumble Resources Ltd (ASX:RTR) Expands Development of Western Queen Project
Development Agreement
Rumble Resources Ltd (ASX:RTR) has entered into an Indicative Non-Binding Term Sheet with Bain Global Resources and MEGA Resources for the development of the Western Queen Gold Project. The agreement is designed to facilitate the cutting back and deepening of the Western Queen South open pit, which has a JORC resource of approximately 1.42 million tonnes at 1.59 g/t for about 72.5koz of gold.
Financial Terms
Under the terms, MEGA will provide mining services while covering up to $25 million in development and working capital costs, with an additional $10 million available for cost overruns. Rumble will share free cash flow generated from the project after initial costs are recovered.
Executive Comments
Peter Harold, Managing Director and CEO, expressed confidence in this partnership, stating, “We are pleased to have the opportunity to go into business with one of the largest mining contractors in India through its Australian subsidiary MEGA.” Harold added that Bain Global Resources’ interest in the project signifies a promising future for the development initiatives at Western Queen.
Next Steps
The companies will proceed to negotiate definitive agreements with a target to finalise these documents by 28 February 2025. Rumble is optimistic about unlocking the value of the Western Queen Gold Project, which has ongoing interest from Bain and MEGA for further developments in the Earaheedy zinc-lead-silver project as well.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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