Resource Mining Corporation Ltd (ASX:RMI) has secured firm commitments in a strongly supported placement to raise $2.427 million which will advance its highly prospective nickel and lithium portfolio across Tanzania and Finland.
Funds from the placement, which was completed at a 10% premium to the last traded price, will be primarily applied towards exploration activities at the company’s newly acquired ‘Massive Nickel’ project portfolio in Tanzania.
In addition, funds will be used for potential future exploration activities at the company’s Finland nickel and lithium projects under an exclusive option agreement as well as for general working capital.
“Placement at a premium”
Resource Mining's executive chairman Asimwe Kabunga said: “We are pleased with the strong support received for this capital raising from both new and existing investors, particularly noting that we have secured the placement at a premium to the last traded price in current market and economic conditions.
“This only goes to show the strength and conviction of our supporters with many exciting projects now under our umbrella – including the Kabulwanyele Nickel Project, the recently acquired ‘Massive Nickel’ project portfolio, and the Finland nickel and lithium projects we currently have under exclusive option.”
Attached unlisted option
Placement participants will also receive an attached unlisted option on a one-option-for-every-two-shares basis with an exercise price of $0.15 per option, expiring 36 months from the date of their issue.
Accordingly, the placement will result in the issue of around 22.1 million fully paid ordinary shares at $0.11 per share and a further 11,031,813 placement options.
The company anticipates settlement of the placement to occur on or around Monday, October 24, 2022, and both placement shares and placement options to be issued on or around Tuesday, October 25, 2022.
Due diligence activities in Finland
The company continues its due diligence activities on the three nickel and lithium projects under an exclusive option in Finland.
Following final due diligence, the company expects to finalise a negotiation with the vendors of the Finland projects over the coming weeks and make a final decision as to the exercise of its exclusive option.