The Rumble Resources share price has dropped despite seemingly good news from the company.
The post Here’s why the Rumble Resources (ASX:RTR) share price fell 5% today appeared first on The Motley Fool Australia. –
Shares in Rumble Resources Ltd (ASX: RTR) dropped today following news the company has secured the remaining interests in 2 exploration licences. The Rumble Resources share price closed today’s trade at 53.5 cents – 5.26% lower than its previous session’s close.
Rumble Resources announced it has exchanged a total of 1.3 million new shares for the 30% remaining stakes in two separate exploration licences at the Braeside Project. It already held a 70% interest in both licences.
Let’s take a closer look at today’s news from the mineral exploration and development company.
Wholly owned project
The Rumble Resources share price is dropping today after it bought the remaining interest in 2 exploration licences at the Braeside Project.
The Braeside Project covers 670sq km in Western Australia’s Pilbara region. It consists of 4 exploration licences.
Ramble Resources announced it has bought 30% of licence E45/2032 from Maverick Exploration Pty Ltd. In return, it will provide Maverick Exploration with 1.8 million new fully paid ordinary shares.
The company also paid 500,000 new fully paid ordinary shares to Great Sandy Pty Ltd for the remaining 30% stake in licence E45/4368.
The Braeside Project houses deposits of zinc, lead, silver, vanadium, and copper.
It also houses a small-scale mine named Ragged Hills, which historically produced high-grade lead, zinc, and silver.
Over multiple phases of exploration, Rumble Resources has previously identified 45 priority targets at the Braeside Project.
The company also owns the Warroo Project and Lamil Project, which are both located nearby the Breaside Project.
In total, the 3 projects cover 2738.6sq km.
Rumble Resources share price snapshot
Despite today’s fall, the Rumble Resources share price has been performing exceptionally well lately.
It has gained a whopping 345% since the beginning of 2021. It has also gained 311% since this time last year.
The company has a market capitalisation of around $350 million, with approximately 614 million shares outstanding.
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Motley Fool contributor Brooke Cooper 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 Bruce Jackson.