Rincon Resources (ASX:RCR) announces it has received firm commitments for an oversubscribed Placement to raise circa $1.43 million from the Company’s advisers, CPS Capital Group Pty Ltd and Ironside Capital Pty Ltd, who act as Joint Lead Managers.
The Placement funds are intended to bolster the upcoming drilling program at its West Arunta Project, set to resume in late February.
$1.43 Million Placement
The Rincon shares available during the Placement were offered at a discounted issue price of $0.033, representing a 10% discount to the 15-day VWAP of $0.037 (January 9).
The Placement garnered robust backing from the Company’s brokers, corporate advisers, sophisticated professional investors, and Rincon’s existing shareholders.
With the successful conclusion of the Placement, the settlement for the New Shares is anticipated to take place on January 19th.
The West Arunta Drilling Program
In December last year, Rincon revealed its expansion of the West Arunta Project footprint to 234 square kilometres by successfully securing a new exploration license application.
Figure 1: West Arunta Project map, showing the location of the New ELA.
The strategically positioned new exploration licenses, located near Rincon’s North Dovers Copper Prospect, have expanded the prospective strike of the West Arunta Project by an additional 8.5 kilometres.
The Company only recently received heritage clearance for site work at the Pokali IOCG Prospect, commencing its drilling preparations.
The drill program is set to encompass two diamond holes, intended up to 1,000 metres, testing a deep gravity-high anomaly below and adjacent to the outcropping IOCG copper-gold and rare earth element (REE) mineralisation at Pokali.
Rincon is optimistic about the Project’s potential, announcing in early December last year it had detected anomalous REE and total rare earth element (TREE) trends at the Pokali IOCG Prospect.
Notably, rock-chip samples yielded 0.48% TREE at KWRK094, 0.43% TREE at KWRK104, and 0.25% TREE at KWRK107, emphasising the region’s substantial geological potential.
Rincon Resources’ Managing Director Gary Harvey commented on the successful Placement.
“The Arunta area is one of the most exciting areas of Western Australia right now for rare earth elements discoveries, in particular Niobium, and the Company and its Corporate Advisers at CPS and Ironside, who arranged this placing, wanted to ensure that Rincon was well funded going into its maiden drilling program,” he said.
“This extra funding will allow the Company to significantly expand its drilling plans for the area.”
RCR’s Australian Stock Exchange-listed share price is currently trading at $0.044 (7.30am UTC+ 8 hours).