Rumble Resources (ASX:RTR) announced that Bain Resources, affiliated with the major Indian mining contractor BGR Mining & Infra, will become a strategic shareholder in the company.
Under the subscription agreement, BRH will purchase 25 million shares in Rumble at 4 cents per share, totalling a $1 million investment.
Peter Harold, Managing Director and CEO of Rumble Resources, said, "We are privileged to have one of the largest mining contractors in India, through an associate company, become a significant shareholder in Rumble."
"BGR are particularly interested in our Western Queen gold project for its near-term cash flow and resource growth potential," said Harold.
The new shares will be issued under Rumble's existing placement capacity as per ASX Listing Rule 7.1 and will rank equally with current securities on issue.
The company plans to seek a quotation of the newly issued shares on the ASX. No broker or advisor was involved in this placement.
BGR Mining & Infra, headquartered in Hyderabad, India, has a substantial presence in the Indian mining industry and has executed over 50 projects.
The company has an order book worth approximately US$11 billion ($16 billion), marking its significance as a leading mining developer and operator.
Rumble Resources, listed on the ASX since July 2011, boasts significant exploration assets, including the Western Queen Gold Project and the Earaheedy Zn-Pb-Ag Project.
The collaboration with BGR aims to leverage the assets for further growth and development.