Rumble Resources (ASX: RTR) share price is soaring again after the company shared news of a $40 million placement to fast-track exploration.
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The Rumble Resources share price is up 26.3% at the time of writing, trading at 70 cents apiece.
Today’s movement has left the Rumble Resources share price with an incredible 531% gain this month alone.
Let’s take a closer look at the placement announced by the mining company this morning.
$40 million placement
Rumble Resources broke the news this morning that it will conduct a placement to institutional and significant sophisticated investors. It hopes to raise $40.2 million before costs.
The company will issue 80.4 million shares within the placement, offered at 50 cents each. This is significant because, before this month, the company’s highest-ever closing price was back in 2012 when it closed for 27 cents.
Rumble said the proceeds would fund an accelerated exploration program at its Earaheedy Project in Western Australia.
The Earaheedy Project has driven the Rumble Resources share price lately after the company released assay results of 2 RC drill holes at its Chinook Prospect within the project.
Those assay results confirmed a major zinc-lead discovery, with the Chinook Prospect found to house consistent grades of 4% to 5% zinc and lead.
Since then, the Ramble Resources share price has been rocketing upwards and today’s news suggests that some big investors believe it will continue to do so.
Commentary from management
Rumble Resources’ managing director Shane Sikora said the company was happy to welcome new institutional and well-known investors onboard, saying:
We see the strong support from the placement as vindication of the company’s pipeline of projects strategy, with a number of years of systematically advancing a number of exciting projects which led to the major discovery at the Earaheedy Project.
Rumble Resources share price snapshot
It goes without saying, this year has been a good one for the Rumble Resources share price on the ASX.
Currently, it’s up 479% year-to-date and has lifted 1,058% over the last 12 months.
The company has a market capitalisation of around $292 million, with approximately 532 million shares outstanding.
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*Returns as of February 15th 2021
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Motley Fool contributor Brooke Cooper 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.