Rigel Resource Acquisition Corp. (the "Company") has reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The Company, which is classified as a shell entity and has not generated any operating revenues since its inception in April 2021, has faced a net loss of $6.39 million for the nine months ended September 30, 2024, a stark contrast to a net income of $4.36 million for the same period in 2023. This decline is primarily attributed to a loss in the fair value of derivative liabilities amounting to $8.73 million.

The Company’s financial position has deteriorated, with total assets decreasing to approximately $82.41 million as of September 30, 2024, down from $270.79 million at the end of 2023. This decline is largely due to cash withdrawals from the Trust Account for redemptions, which totaled $198.88 million during the nine months ended September 30, 2024. The cash held in the Trust Account has also significantly decreased, from $270.67 million at the end of 2023 to $82.13 million.

General and administrative expenses surged to $6.04 million for the nine months ended September 30, 2024, compared to $926,980 for the same period in 2023. The Company reported total expenses of $6.13 million for the nine months ended September 30, 2024, compared to $1.02 million in the prior year. The increase in expenses reflects the costs associated with pursuing a business combination, which remains a critical focus for the Company.

In terms of strategic developments, Rigel Resource Acquisition Corp. entered into a Business Combination Agreement on March 11, 2024, with Blyvoor Gold Resources and Blyvoor Gold Operations, aiming to merge and acquire these target companies. However, the Company has faced challenges in completing this business combination, leading to a final delisting notice from the New York Stock Exchange on November 4, 2024, due to non-compliance with the requirement to complete a business combination within 36 months of its initial public offering.

As of September 30, 2024, the Company reported a working capital deficit of $14.07 million and had cash of $211,463 outside the Trust Account. The Company has incurred substantial costs related to its acquisition plans and has less than 12 months to complete a business combination, raising significant doubt about its ability to continue as a going concern.