- Resource Mining (RMI) has received firm commitments for a $1.2 million placement
- The nickel explorer will issue 10 million new shares at 12 cents each and, for every two shares subscribed for, investors will receive one option exercisable at 15 cents
- The money will go towards exploration at the Kabulanywele nickel project in Tanzania, the recently announced Massive Nickel acquisition, and for due diligence at nickel and lithium projects in Finland
- Additionally, current Chairman Asimwe Kabunga has been appointed to the executive role, effective immediately
- RMI has ended Thursday’s session up 7.41 per cent to close at 14.5 cents per share
Resource Mining (RMI) has received firm commitments to raise $1.2 million through a placement.
The nickel exploration company will issue professional and sophisticated investors 10 million new shares priced at 12 cents each.
The issue price marks a 2.7 per cent discount to the 15-day volume-weighted average price and a 94 per cent increase from the most recent capital raise in May.
Additionally, the placement includes five million attached unlisted options, whereby investors will receive one option for every two shares subscribed for. Each option is priced at 15 cents and are to be exercised within 36 months of the issue date.
Resource Mining will use the $1.2 million for exploration activities at the Kabulanywele nickel project in Tanzania, and for the Massive Nickel acquisition and its Tanzanian projects.
Resource Mining recently announced it’s undertaking an 18-hole drilling effort at the Kabulanywele nickel project to test the presence of massive sulphides and improve its geological understanding of the area.
The materials stock will also allocate some funds to due diligence work for the Roussakero nickel and Hirvikallio and Kola lithium projects in Finland as part of an exclusive option agreement.
In addition to the capital raise, the company has appointed Chairman Asimwe Kabunga to the role of Executive Chairman, effective immediately.
Mr Kabunga said the company is “moving through a transformational period” with exploration drilling commencing at the Kabulanywele project and an increase in the scale of RMI’s project portfolio.
“I am very pleased with the level of support from existing shareholders and new investors, who share our excitement and bold strategic vision for the company as we increase our exposure to commodities with robust demand profiles through the development of a diversified, and high quality project portfolio,” he said.
RMI ended Thursday’s session up 7.41 per cent to close at 14.5 cents per share.