Resolution Minerals Limited (RML) has received firm commitments for a placement of fully paid ordinary shares in the company to sophisticated investors to raise a total of $3.25 million (before costs) at an issue price of $0.028 per Share to progress RML’s 64North Project in Alaska and its Wollogorang and Benmara Projects in the Northern Territory. Resolution also has cornerstone support of $2 million from Fresh Equities.
Managing Director of RML, Duncan Chessell, said the funds will be directed to drill testing large-scale potential gold and copper prospects across the company’s portfolio of projects in Alaska and Australia.
“We will also be generating new targets on the copper-cobalt Wollogorang and Benmara Projects in Australia. Global uncertainty and volatility retain gold’s attractiveness and the voracious appetite for copper, cobalt, nickel, aluminium and other battery metals required to convert the world from fossil fuels to green electrical alternatives is now a short-medium and long-term reality. These factors position Resolution to create short and medium-term value for shareholders on exploration success,” Mr Chessell commented.
Participants in the Placement will also receive options to acquire shares, on a one for two basis with an exercise price of $0.042 per share and expiring 1 year from the date of issue, subject to shareholder approval.
Funds received from the $3.25 million placement will be used to test high priority drill targets at the Sunrise and East Pogo Prospects on the 64North Project which surrounds Northern Star’s Pogo mine. Drilling on the Sunrise Prospect is expected to commence in March.
RNL will also use funds for geophysics and drill testing at its Wollogorang and Benmara Projects which are prospective for battery metals – copper and cobalt.
A total of 116,071,443 shares will be issued at $0.028 (2.8 cents) per share to raise $3.25 million under the Placement. 50,000,000 shares will be issued under the company’s share placement facility approved by shareholders at the 2020 AGM, 32,571,443 shares will be issued under the company’s 15 per cent placement capacity under Listing Rule 7.1 and 33,500,000 shares will be issued under the company’s 10 per cent placement capacity under Listing Rule 7.1A.