Perth, Western Australia - ASX listed minerals explorer, Rincon Resources Limited (ASX: RCR) ("Rincon" or "the Company") is pleased to announce the successful completion of an over-subscribed capital raising of A$5.6 million. The funds were raised through the placement of 56,000,000 fully paid ordinary shares at a price of $0.10 per share. This capital injection will primarily fund the expansion of exploration activities at the Company’s promising West Arunta Project in Western Australia.
The placement attracted significant interest from institutional, professional, and sophisticated investors, along with continued support from existing shareholders. The shares were issued at the 10-day Volume Weighted Average Price (VWAP) of $0.10, reflecting stable investor confidence in the Company’s strategic direction. The transaction was expertly managed by CPS Capital Group Pty Ltd and Ironside Capital Pty Ltd, who served as Joint Lead Managers.
Managing Director, Gary Harvey, commented on the raising saying:
“We are thrilled to announce the successful completion of our recent capital raising, securing firm commitments for $5.6 million through the placement of 56,000,000 fully paid ordinary shares at $0.10 per share, managed by CPS and Ironside. This significant support from our existing shareholders and new investors, underscores their confidence in Rincon Resources and our exploration strategy.
“The funds raised will be pivotal in advancing our West Arunta Project, enabling us to expand and implement our systematic exploration programs beyond the first phase of drilling at the exciting new Avalon NbREE/IOCG target. We can now push on with planned drilling programs to test the new Sheoak, K1 and K2 targets, as well as any immediate follow-up programs at Pokali.
“We remain committed to delivering value to our shareholders through strategic exploration and development of our assets, and we are excited about the opportunities that lie ahead for the Company.”
The proceeds from the capital raise will be utilized to fast-track and expand systematic drill testing at the West Arunta Project, including the exciting new Avalon Nb-REE/IOCG target and other newly identified areas such as the Sheoak, K1, and K2 gravity targets. Additionally, funds will support ongoing exploration activities at the Laverton Project and bolster general working capital.
In conjunction with the placement, Rincon Resources plans to issue 16 million unquoted options exercisable at $0.15 each, with a 2-year term, to the Joint Lead Managers. Furthermore, key management personnel including the Managing Director, Executive Chairman, and Non-Executive Directors will be allocated options, pending shareholder approval, which underscores their commitment to the Company’s long-term success.
About us:
Rincon has 100% interest in three exploration assets in Western Australia that are highly prospective for copper, gold, Nb, REE’s, and other critical metals required for the energy transition. These are the South Telfer Project, West Arunta Project and Laverton Project.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
