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Rincon Resources Oversubscribed Placement to Raise $2.6M for Accelerated Exploration

31 August 2023 11:50
ASX:RCR

Rincon Resources Limited (ASX:RCR) has secured firm commitments for an oversubscribed placement, raising $2.6 million before costs, a milestone propelling exploration in Paterson Range and West Arunta to unlock potential in the Mammoth Copper-Gold Target and Pokali IOCG/REE Prospect through accelerated drilling programs.

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Figure 1: South Telfer Project, Paterson Range, showing location of Mammoth and Recurve Targets.

Demand Exceeds Expectations

The strong demand demonstrated by investors led to the oversubscription of the Placement, ultimately resulting in the upward adjustment of the total amount to accommodate the additional interest.

The offering, consisting of 96,000,000 new fully paid ordinary shares at an issue price of $0.025 per share, represents a 19.4% discount to the last closing price of the Company’s shares on August 28, 2023, which stood at $0.031 per share.

This Placement enjoyed support from a diverse range of investors, including sophisticated and professional investors, existing shareholders, and the Company’s directors and officers. The involvement of such a broad spectrum of stakeholders speaks to the confidence they have in Rincon’s exploration prospects and its management team’s ability to execute on its strategic initiatives.

Strategic Utilisation of Capital

The capital infusion from this placement is earmarked for expediting exploration activities at two key projects: South Telfer and Kiwirrkurra. The South Telfer Project will witness intensive drilling of the Mammoth Copper-Gold Target, with up to 3,000 metres of reverse circulation drilling planned, with this effort aiming to unlock the potential of this high-priority target and gain deeper insights into its mineralisation.

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Figure 2: Kiwirrkurra Project, West Aruntashowing location of Pokali IOCG/REE Prospect.

At the Kiwirrkurra Project, attention will be focused on the Pokali IOCG/REE Prospect, with this area slated for up to 1,000 metres of diamond drilling. The Company’s exploration efforts at Pokali are guided by recent rock-chip sampling which revealed 0.29% TREO, 1.94% Cr, 3,030ppm Zr, and a suite of other elements, confirming the potential for REE-Carbonatite mineralised systems and marking a pivotal milestone in demonstrating the Project’s fertile Carbonatite intrusions and multi-commodity potential.

Situated in close proximity to key industry players such as CGN Resources (ASX:CGR), WA1 Resources (ASX:WA1), Rio Tinto Exploration (ASX:RIO), and NorthWest Minerals (ASX:NWM), the upcoming diamond drilling program is a critical stride toward comprehending the full mineral potential of the Prospect.

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Figure 3: Kiwirrkurra Project, West Arunta, highlighting the Pokali IOCG/REE Prospect area.

Management’s Vision

Rincon Resources’ Managing Director Gary Harvey expressed his enthusiasm for the overwhelming investor support. He commented the significance of this capital raise in expediting crucial exploration efforts, particularly the upcoming drilling programs aimed at unlocking the high-priority targets within the Paterson Range and West Arunta Project areas.

“Firstly, I welcome all new investors to Rincon,” he said.

“I am very pleased with the support and demand for this Placement which now allows Rincon to accelerate its exploration activities, particularly with drilling programs to test high-priority targets in the Paterson Range and West Arunta Project areas.”

Mr Harvey also provided insights into the timeline, indicating that a drill rig is poised to commence operations in the Paterson Range within weeks. Additionally, a heritage survey is scheduled to begin shortly in the West Arunta, paving the way for the eagerly anticipated diamond drilling program at Pokali, set to commence around October or November.

“A drill rig is scheduled to arrive in the Paterson within weeks to commence drilling at Mammoth, and a heritage survey is set to commence in a matter of weeks in the West Arunta to clear the way for our long-awaited diamond drilling program at Pokali, which we aim to commence October/November. In the meantime, preparations are underway to get back on the ground at Pokali and continue our investigation of the Carbonatite related REE mineralisation identified in recent rock-chip sampling.”

RCR’s Australian Stock Exchange-listed share price has risen 6.33% today and is currently trading at $0.033 (11.30am UTC+ 8 hours).

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