Rumble Resources inks updated royalty agreement with Elemental
A subsidiary of ASX-listed Rumble Resources has entered into a transaction with a subsidiary of Elemental Royalty Corporation whereby Elemental will pay A$10-million to acquire a 2.5% net smelter return royalty on gold produced from the Western Queen gold and tungsten project, in Western Australia.
This replaces an existing royalty that was in place for between A$6/oz and A$20/oz of gold produced.
Rumble and its subsidiary, Western Queen, deems the transaction mutually beneficial for all parties since Western Queen receives funding to advance the project without any equity dilution to existing shareholders, while Elemental gets increased exposure to meaningful gold royalty from a near-term producing asset.
“This acquisition demonstrates a strong vote of confidence by Elemental in the Western Queen project and our ability to bring the asset into production,” comments Rumble MD and CEO Peter Harold.
He confirms the company is now well-funded to move the Western Queen project into pre-development stage, with the first major task being the dewatering of the openpit, which can start as soon as a groundwater licence is received.
