Resource Mining Corporation Ltd (ASX:RMI) is raising up to $2 million through a placement to sophisticated and professional investors and a subsequent partially underwritten non-renounceable entitlement issue to eligible shareholders.
For the placement, the company has received firm commitments from sophisticated and professional investors to raise $1 million through the issue of 20 million shares at $0.05 per share.
In conjunction with the placement, RMI intends to undertake a partially underwritten non-renounceable entitlement offer to eligible shareholders to raise up to another $1 million.
Use of funds
The proceeds of the capital raising will be put toward:
- diamond drilling campaign at Liparamba Nickel Project in Tanzania,
- fieldwork and initial drilling at Kola Lithium Project in Finland,
- further exploration in Tanzania and Finland,
- general working capital, and
- payment of placement and entitlement offer costs.
Cap raise summary
RMI has engaged Ignite Equity Pty Ltd to act as lead manager for the placement.
Under the entitlement offer, eligible shareholders will be able to subscribe for one new share for every 27.29 shares held at the record date at the offer price.
Executive chairman and major shareholder Asimwe Kabunga shall partially underwrite 50% of the entitlement offer for a total of $500,000.
Directors who are company shareholders will also take up their entitlements, in full, to the value of $228,000.
The entitlement offer will open on Thursday, August 24, 2023, and close at 5.00 pm (AEST time) on Monday, September 4, 2023.