Resource Mining Corporation Ltd (ASX:RMI) has secured a funding facility of up to A$5 million through a convertible securities agreement with RiverFort Global Capital Ltd. The first drawdown of A$1.3 million will be used to progress exploration activities across the company’s copper-gold projects in Tanzania and Saudi Arabia, as well as ongoing work on its nickel and lithium assets in Tanzania and Finland.
The facility offers up to A$5 million over a three-year term, with the initial A$1.3 million to be drawn on July 31, 2025. This involves the issue of 1.3 million convertible securities at a conversion price of A$0.021. Interest will be paid at a 7% fixed rate in cash on maturity. A 5% drawdown fee applies, deducted from gross proceeds.
Alongside this, Resource Mining Corporation will issue 10,833,333 options with a 24-month maturity and a strike price of A$0.03. Future drawdowns will be priced at a 30% premium to the five-day volume-weighted average price and include a similar structure of coupon, fees and options.
“We are pleased to obtain significant funding for our projects from this facility. The company continues to make good progress on its copper and gold exploration activities in Tanzania and expanding its gold project portfolio through the Saudi Arabia joint venture option,” executive chairman Asimwe Kabunga said.
“We see long term value in our nickel and lithium projects and will continue to monitor market conditions and seek opportunities to realise value for shareholders from all of our assets. It is important to keep the company well-funded to deliver on the above.”
Exploration strategy and assets
The company is actively pursuing a diversified exploration strategy across copper, gold, nickel and lithium. In Tanzania, Resolution is advancing the Mpanda and Mbozi copper-gold projects and four nickel-focused tenements, including Kabanga North, Kapalagulu, Kabulwanyele and the Southern Projects.
In Finland, the Kola Lithium Project (Köyhäjoki and Pikkukallio permits) is located adjacent to Keliber’s major lithium deposits, while the Hirvikallio Project (Laitiainen application) has returned promising results such as 5 metres at 2.30% Li₂O and 2 metres at 1.33% Li₂O.