Here's why the Rumble Resources (ASX:RTR) share price fell 5% today

The Rumble Resources share price has dropped despite seemingly good news from the company.

a miner hanging his head down as if disappointed.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Rumble Resources Ltd (ASX: RTR) dropped today following news the company has secured the remaining interests in 2 exploration licences. The Rumble Resources share price closed today's trade at 53.5 cents – 5.26% lower than its previous session's close.

Rumble Resources announced it has exchanged a total of 1.3 million new shares for the 30% remaining stakes in two separate exploration licences at the Braeside Project. It already held a 70% interest in both licences.

Let's take a closer look at today's news from the mineral exploration and development company.

Wholly owned project

The Rumble Resources share price is dropping today after it bought the remaining interest in 2 exploration licences at the Braeside Project.

The Braeside Project covers 670sq km in Western Australia's Pilbara region. It consists of 4 exploration licences.

Ramble Resources announced it has bought 30% of licence E45/2032 from Maverick Exploration Pty Ltd. In return, it will provide Maverick Exploration with 1.8 million new fully paid ordinary shares.

The company also paid 500,000 new fully paid ordinary shares to Great Sandy Pty Ltd for the remaining 30% stake in licence E45/4368.

The Braeside Project houses deposits of zinc, lead, silver, vanadium, and copper.

It also houses a small-scale mine named Ragged Hills, which historically produced high-grade lead, zinc, and silver.

Over multiple phases of exploration, Rumble Resources has previously identified 45 priority targets at the Braeside Project.

The company also owns the Warroo Project and Lamil Project, which are both located nearby the Breaside Project.

In total, the 3 projects cover 2738.6sq km.

Rumble Resources share price snapshot

Despite today's fall, the Rumble Resources share price has been performing exceptionally well lately.

It has gained a whopping 345% since the beginning of 2021. It has also gained 311% since this time last year.

The company has a market capitalisation of around $350 million, with approximately 614 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »

a miner holds his thumb up as he holds a device in his other hand.
Resources Shares

3 reasons why the BHP share price could still be a buy

There are a few reasons why this mining giant could be appealing.

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

The pros and cons of buying Fortescue shares in June

Let’s dig into whether it’s a good time to invest in this mining giant.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why did the Mineral Resources share price rip 15% higher today?

The iron ore and lithium giant was the fastest riser of the ASX 200 on Thursday.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

2030 forecast: As Australia's iron ore export earnings decline, copper will rise. What does this mean for BHP shares?

BHP is expanding its iron ore and copper production.

Read more »