Rincon Resources’ option holders exercise $460,500 for Avalon “bullseye” exploration

10 May 2024 09:46

Rincon Resources (ASX:RCR) has received $460,500 from investors who purchased shares exercisable at $0.05 per option, signalling strong confidence in the company’s future exploration endeavours.

The combination of this funding, along with Rincon’s existing cash balance of $2.145 million as of March 31 2024, will significantly boost its exploration efforts, further reinforced by the successful receipt of a co-funding grant through the Western Australian Government’s Exploration Incentive Scheme (EIS).

EIS funding secured

Today’s announcement builds upon Rincon’s recent achievement of securing a substantial co-funding grant from Round 29 of the Western Australian Government’s EIS, totalling up to $180,000.

With a specific focus on supporting exploration in Western Australia through precompetitive data and a co-funding program for innovative exploration drilling, Rincon aims to uncover the next major potential Nb-REE or IOCG deposits within the West Arunta region. This involves targeted reverse circulation drilling at newly identified sites, including Avalon, Sheoak, K1, and K2.

Avalon ‘bullseye’ target

Spanning a 3 kilometre east-west elongated gravity anomaly high with an amplitude of approximately 5mGal, Avalon presents a prime candidate for carbonatite-Nb-REE or IOCG mineralisation amongst the newly identified targets.

Drawing parallels to the WA1 Luni carbonatite, Avalon exhibits comparable size and geometry, with similarities to significant Australian IOCG copper-gold deposits like BHP’s Prominent Hill and Evolution Mining’s Ernest Henry, indicating its substantial potential.


Figure 1: Map showing new targets recently outlined from detailed gravity surveying at West Arunta. RC drilling to test the new the Avalon, Sheoak, K1 and K2 targets will be co-funded up to $180,000 via the WA Government EIS.

Management commentary

Rincon Resources‘ Managing Director, Gary Harvey, stated that the funds bolster the company’s robust financial position, enabling the company to conduct operations within the highly sought-after West Arunta region.

“We are pleased to have received strong support from the Company’s option holders, strengthening our cash position.

“This funding provides the Company with further flexibility to advance exploration at West Arunta, including funding the first phase of drilling at the new Avalon niobium-REE/IOCG target in the next few months,” he said.

RCR’s Australian Security Exchange-listed share price is up 2.04% today and is currently trading at $0.10 (09:30 am UTC+ 8 hours).

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