Rumble Resources has announced this morning that it has entered into an earn-in and exploration joint venture agreement with AIC Mines Limited (A1C) for 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.
Terms of the joint venture 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:
- AIC will subscribe for a further $250,000 worth of new Rumble shares; and
- AIC will issue to Rumble an additional $250,000 worth of new shares in AIC for nil cash consideration.
- 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.
RTR recently raised $1.5 million via the issue of 27,496,455 fully paid ordinary shares at 5.5c per share so they do have some cash in the bank but clearly not enough to advance the Lamil Project, so it’s no surprise that a farm in/joint venture has been announced.
The Lamil Project appears to have a lot of potential and has resemblances to Newcrest’s Telfer Mine.
It’s early stage but this is one to keep an eye on, especially as Josef El-Raghy is a company Director at AIC Mines. They have signed up for this join venture with RTR for a reason and I suspect that the Lamil Project might turn out to be a huge deposit down the track.
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