Rumble Resources secures $10M through gold royalty

Rumble Resources (ASX:RTR) announced the sale of a 2.5% net smelter return royalty to Elemental Royalty Corp.

The transaction, valued at up to $10 million, represents a critical restructuring of existing royalty agreements and provides a substantial cash injection for the Perth-based explorer without diluting shareholder equity.

Under the terms of the agreement, the new NSR royalty replaces a previous arrangement of $6–20 per ounce.

The $10 million consideration is structured in two equal tranches: $5 million payable upon the signing of the royalty agreement and deed and the remaining $5 million triggered by the execution of a tolling milling agreement.

The capital infusion is earmarked for immediate pre-development works at the Western Queen site, with the primary focus being the dewatering of the open pit following the receipt of the necessary groundwater licence.

Managing Director and CEO Peter Harold described the deal as a "win-win" for both parties, noting that the acquisition reflects Elemental’s confidence in the project's viability and Rumble’s operational capacity.

By opting for a royalty sale over a traditional equity raise, Rumble avoids dilution while securing the funding required to transition the asset towards production.

At the time of reporting, Rumble Resources’ share price was $0.053.