Rumble Resources Western Queen Royalty Deal Raises A$10 Million

Rumble Resources Secures A$10 Million Royalty Deal — Zero Dilution, Full Steam Ahead at Western Queen

Rumble Resources Limited (ASX: RTR) has announced a significant financing milestone, with the Rumble Resources Western Queen royalty deal with Elemental Royalty securing up to A$10 million through the sale of a 2.5% Net Smelter Return (NSR) gold royalty on its Western Queen Gold and Tungsten Project. The deal replaces a legacy flat-rate royalty structure and delivers meaningful pre-development capital without issuing a single new share to market.

This is a high-materiality announcement for Rumble investors. It resolves the company's near-term funding question for Western Queen, introduces a cleaner and commercially superior royalty structure, and comes backed by one of the sector's more credible mid-tier royalty companies — one that had already undertaken extensive due diligence on the asset before committing.

The Deal at a Glance

The royalty applies to the following Western Queen tenements: M59/45, M59/208, L59/40, E20/967, and E59/2816.

From Flat Rate to Percentage: Why Does the Royalty Restructure Matter?

One of the more technically significant elements of this deal is the nature of the royalty change itself. Rumble has moved from a fixed-rate royalty — A$6 to A$20 per ounce of gold produced — to a percentage-based NSR structure.

For Rumble, the move to a percentage-based royalty aligns the royalty obligation directly with the gold price at the time of production. Permitted deductions under the agreement include:

• Actual third-party transportation and insurance costs from the processing site to the point of sale
• Actual third-party treatment, refining, and smelting charges
• Penalties and payable marketing fees incurred to third parties

Royalty payments will be made quarterly in arrears, 30 days after the end of each quarter — a standard, investor-friendly payment mechanic that provides Elemental with predictable cash flow tied to production.

Furthermore, NSR royalties are well understood by capital markets and are seen as a credible, low-friction financing tool. By adopting this structure, Rumble positions Western Queen within the commercial norms of the broader royalty financing ecosystem — making future transactions and valuations more straightforward.

No New Shares. No Debt. Just Capital.

Perhaps the most investor-friendly aspect of this transaction is what it is not: it is not a capital raise, a placement, or a debt facility.

Rumble raises A$10 million in project capital while:

1. Issuing zero new shares — existing shareholders face no dilution whatsoever
2. Taking on no debt obligations — there are no repayments, interest charges, or covenant structures
3. Retaining 100% ownership of the Western Queen project

This is a structurally clean funding outcome. For a junior explorer with an advancing development asset, accessing this level of capital without touching the share register is a meaningful achievement.

Managing Director & CEO Peter Harold:
"We are now well-funded to move the Western Queen gold and tungsten project into pre-development with the first major task being the dewatering of the Western Queen open pit which can commence as soon as we receive the Groundwater Licence."

Elemental's Endorsement Carries Weight

Elemental Royalty Corporation is not a passive financial counterparty. It is a Nasdaq and TSX-listed (ticker: ELE) mid-tier, gold-focused royalty and streaming company with a globally diversified portfolio comprising 18 producing royalties and more than 200 development and exploration-stage royalties.

Its existing portfolio includes cornerstone royalties on:

• Lundin's Caserones Mine — Chile
• Timok Čukaru Peki Mine operated by Zijin Mining — Serbia
• Karlawinda operated by Capricorn Metals — Western Australia

Elemental's decision to upgrade its existing royalty position — committing A$10 million after conducting extensive due diligence — is not a routine transaction. Companies of Elemental's scale and experience evaluate hundreds of royalty opportunities. Consequently, the fact that they chose to deepen their exposure to Western Queen specifically, and at this stage of development, speaks directly to the project's perceived quality and near-term production credibility.

David Baker, Chief Investment Officer, Elemental Royalty Corporation:
"We have worked with the Rumble team for a number of years and they are well placed to advance Western Queen toward production, having already made material progress in the mine planning and permitting processes. Our investment demonstrates our confidence in the team's ability to deliver the Western Queen Project and unlock value for both sets of shareholders."

Western Queen: The Asset Behind the Deal

The Western Queen Gold and Tungsten Project is located 90km northwest of Mt Magnet within the Yalgoo mineral field of Western Australia. Rumble holds 100% equity in the project.

The project has an established haul road linking Western Queen to the Dalgaranga processing plant, which historically treated ore from the Western Queen Central Deposit. That infrastructure remains accessible and is the primary access route to site today.

What Comes Next: Pre-Development Milestones

With A$5 million received on signing and a further A$5 million triggered upon execution of a tolling/milling agreement, Rumble now has a clear and staged capital pathway into production.

The company has outlined its immediate priorities:

1. Groundwater Licence approval — the critical near-term regulatory step enabling dewatering of the Western Queen open pit to commence
2. Open pit dewatering — the first major physical pre-development activity, commencing upon receipt of the Groundwater Licence
3. Execution of a tolling/milling agreement — this unlocks the second A$5 million tranche from Elemental, and also represents a key commercial milestone in its own right
4. General corporate, exploration, and project development — the use of proceeds encompasses broader advancement of the project

Understanding Mining Royalties: A Primer for Investors

Net Smelter Return royalties represent one of the mining industry's most common and investor-friendly financing structures. Unlike equity dilution or debt arrangements, royalties provide developers with upfront capital in exchange for a percentage share of future revenue from metal sales.

How Do NSR Royalties Work?

NSR royalties entitle the holder (in this case Elemental) to a fixed percentage of revenue generated from the sale of metal, after deducting specific processing, transport, refining, and insurance costs. The royalty holder receives payment without bearing any operating or capital costs associated with mining, processing, or development.

Key Advantages for Developers

• No equity dilution or loss of project control
• No debt repayment obligations or interest charges
• Capital availability before production begins
• Alignment of royalty payments with actual revenue

Key Advantages for Royalty Holders

• Exposure to commodity price upside without operational risk
• Predictable cash flow once production begins
• No capital expenditure requirements
• Protection through senior position in payment waterfall

In addition, this financing model has become increasingly popular in the mining sector as it allows development companies to access capital markets without the complexity of traditional debt structures or the dilution associated with equity raises.

The Investment Thesis in Focus

The Rumble Resources Western Queen royalty deal with Elemental Royalty marks a new phase for the company. The combination of a fully funded pre-development programme, a structurally clean balance sheet, and an institutional-grade third-party validation from Elemental creates a more compelling near-term investment profile.

Key pillars of the investment case following this announcement include:

• Non-dilutive capital deployment — A$10 million raised without touching the share register is rare at this stage of the development cycle and preserves shareholder value
• Near-term production pathway — Western Queen is positioned as a near-term producing asset, with permitting and mine planning already materially advanced according to Elemental's own assessment
• Dual commodity exposure — the project carries both gold and tungsten optionality within Rumble's 100%-owned tenement package
• Institutional backing from a credible royalty company — Elemental's portfolio spans three continents and 18 producing royalties; their decision to increase exposure here is a meaningful signal
• Existing infrastructure proximity — the legacy haul road connection to the Dalgaranga plant reduces capital intensity compared to greenfield development scenarios
• Broader portfolio leverage — Rumble also holds the Earaheedy Zinc-Lead-Silver Project, which the company cites as a world-class orebody discovery, providing additional exploration upside beyond Western Queen

Key Technical Terms

What Is a Net Smelter Return (NSR)?

Net Smelter Return (NSR) refers to a royalty calculated as a percentage of revenue from metal sales, after deducting agreed costs such as transportation, refining, and treatment charges. The royalty holder receives payment without bearing any operating or capital costs.

What Is a Tolling/Milling Agreement?

A tolling/milling agreement is a commercial arrangement where ore mined at one site is transported and processed at a third-party facility for a fee, rather than the mine owner constructing its own processing plant. This approach is common in Western Australian gold operations with multiple mills in proximity.

What Is a Right of First Refusal (ROFR)?

A Right of First Refusal (ROFR) is a contractual right giving Elemental the first opportunity to match any future streaming, royalty, or metals payment deal that Rumble proposes on the Western Queen tenements before it can be offered to a third party.

What Is a Groundwater Licence?

A Groundwater Licence is a regulatory approval required in Western Australia before significant water extraction activities — such as dewatering a mine pit — can commence.

What Does Pre-Development Mean?

Pre-development refers to the phase of work that precedes formal mine construction, typically encompassing detailed engineering, permitting completion, infrastructure preparation, and site-readiness activities.

Key Takeaway:
The Rumble Resources Western Queen royalty deal with Elemental Royalty positions the project for pre-development without diluting its shareholders by a single share. With A$5 million already in hand, a defined pathway to a further A$5 million, and the endorsement of an internationally recognised royalty company behind it, RTR enters a pivotal operational phase. The next major catalysts — the Groundwater Licence and a tolling agreement — are both within reach and both carry meaningful financial consequences for the company's trajectory.

Want to Learn More About Rumble Resources and the Western Queen Project?

Rumble Resources (ASX: RTR) has secured a non-dilutive A$10 million royalty deal backed by an internationally recognised royalty company, positioning Western Queen for a clear pre-development pathway — without issuing a single new share. With A$5 million already in hand, near-term production catalysts on the horizon, and dual gold and tungsten commodity exposure across a 100%-owned project, RTR presents a compelling case for investors watching the junior development space. To explore the full investment case and stay across the latest developments at Rumble Resources, visit the company's website here.