Resource Mining Corporation Ltd (ASX:RMI) has raised more than $832,000 in a partially underwritten non-renounceable pro-rata entitlement offer with funds to advance exploration at its battery minerals assets in Tanzania and Finland.
These funds will add to the $1 million raised by the company in a placement at $0.05 per share to existing shareholders and new sophisticated investors which closed last month.
READ: Resource Mining Corporation completes $1 million capital raise for work in Tanzania and Finland
Capital-raising funds will go towards diamond drilling at Liparamba Nickel Project in Tanzania, fieldwork and initial drilling at Kola Lithium Project in Finland, and further exploration in Tanzania and Finland.
About the offer
The entitlement offer gave eligible shareholders the opportunity to subscribe for one fully paid ordinary share for every 27.29 fully paid ordinary shares held on the record date, at $0.05 per share.
RMI anticipates issuing 16,640,355 new shares amounting to total subscriptions of $832,018 with 6,640,355 new shares to be issued to shareholders who accepted their entitlements and successful applicants for additional new shares.
Underwritten component
In addition, 10 million new underwritten shares, for which the company has advised Kabunga Holdings Pty Ltd, an entity associated with the company’s executive chairman Asimwe Kabunga, as the underwriter, are to be subscribed for in line with an underwriting agreement.
New shares applied for under the offer, excluding the underwritten shares, will be issued on September 18, 2023, with normal trading of these shares expected to begin on September 19, 2023. The company expects to issue the underwritten shares on or before October 2, 2023.
Following the offer, the number of shares on issue in the company will be 562,347,807 before any shortfall shares are taken up and issued.
Shortfall shares
RMI has the right to place, at its discretion, any or all of the 3,357,219 shortfall shares to one or more investors by no later than three months after the closing date at the same issue price.
These investors may include professional, sophisticated or other investors identified by the company (who may be existing shareholders or new investors). The company has not yet identified any such investors and there is no guarantee that any such placement will occur.
“Strong support”
Following the placement, executive chairman Asimwe Kabunga said: “We are delighted with the strong support we received for the placement from our existing and new shareholders.
"We thank existing shareholders for their continued support and welcome our new shareholders.
”The capital raisings ensure the company is in a strong position to complete the exciting exploration programs currently in progress targeting sulphide nickel in Tanzania and lithium in Finland."
About Resource Mining Corp
The strategic intent of Resource Mining Corporation is to establish a long-term business model based on mineral development delivering consistent shareholder value whilst operating in a sustainable way within the community and environment in which it operates.
RMC is exploring for battery minerals, namely nickel and lithium, in Tanzania and Finland.
It has four projects in Tanzania focusing on nickel occurrences in sulphides within known and prolific mafic and ultramafic intrusions. In Finland, RMI has three projects, two are focusing on the exploration of lithium and the remaining project is targeting nickel.
The board has strong ties to Tanzania, chaired by Asimwe Kabunga, a Tanzanian-born Australian entrepreneur who was instrumental in establishing the Tanzania Community of Western Australia Inc. and served as its first president.