Rincon Resources raises $1.4m in oversubscribed placement for West Arunta drill program expansion

• Rincon Resources (ASX:RCR) secures $1.43 million through an oversubscribed placement
• The funds will go toward an expansion of the ongoing drill program at its West Arunta project in WA
• Rincon is set to issue around 43 million new shares, priced at 3.3 cents, representing a 10 per cent discount to the 15-day VWAP of 3.7 cents as of January 9
• The company’s drilling program is slated to re-start in late February
• Shares in RCR last traded at 4 cents

Gold and base metals explorer Rincon Resources (ASX:RCR) has secured $1.43 million through an oversubscribed placement.

The funds raised are earmarked for the expansion of the ongoing drill program at its West Arunta project in Western Australia.

Rincon’s drilling program is slated to re-start in late February, contingent on a few factors, such as weather and contractor arrival.

New exploration license application

On December 20, the company announced an increase to its West Arunta footprint to 234 square kilometres following the acquisition of a new exploration licence application.

“The Arunta area is one of the most exciting areas of Western Australia right now for rare earth elements discoveries, in particular Niobium, and the company and its Corporate Advisers at CPS and Ironside, who arranged this placing, wanted to ensure that Rincon was well funded going into its maiden drilling program,” Rincon Managing Director Gary Harvey said.

Placement details

The placement was priced at 3.3 cents, representing a 10 per cent discount to the 15-day volume weighted average price (VWAP) of 3.7 cents as of January 9.

Rincon is set to issue slightly over 43 million new shares, with the settlement expected on January 19.

“This extra funding will allow the company to significantly expand its drilling plans for the area,” Mr Harvey added.

Shares in RCR last traded at 4 cents.