Resource Mining Corporation Secures A$1 Million Funding for Mpanda Project
RMI (RMI) Share Update October 2024 Monday 21st
Resource Mining Corporation Secures A$1 Million Funding
Resource Mining Corporation Limited (ASX: RMI) has announced a new funding agreement with RiverFort Global Capital Ltd, securing a bridging loan of up to A$1,000,000 to advance its Mpanda Copper-Gold Project in Tanzania.
Instant Summary:
- A$1,000,000 bridging loan secured from RiverFort Global Capital Ltd.
- Initial drawdown of A$500,000 on execution date.
- Funds to be used for Mpanda Copper-Gold Project and working capital.
- 10% fixed interest rate with a four-month term.
- Security includes a first-ranking general security over the company.
Funding Agreement Details
Resource Mining Corporation Limited (RMI) has entered into a funding agreement with RiverFort Global Capital Ltd for a bridging loan of up to A$1,000,000. This funding will support the company's exploration activities at the Mpanda Copper-Gold Project in Tanzania and provide general working capital.
The initial drawdown of A$500,000 will occur on the execution date, with further drawdowns up to the total loan amount subject to mutual agreement. The loan carries a fixed interest rate of 10%, payable in cash on the maturity date, which is four months from the execution date.
Security and Repayment Terms
The loan is secured by a first-ranking general security over the company and its subsidiaries. A drawdown fee of 5% is payable in cash, or 7% if settled in shares. Additionally, the company will issue 5 million options with a 3-year maturity and an exercise price of A$0.0225 on the first drawdown date.
RMI has outlined a repayment schedule where the principal and interest are to be repaid in cash on or before the maturity date. If not repaid, extension terms will apply, allowing for the issuance of a convertible note with a 12-month term and conversion options based on share price performance.
This funding agreement is likely to bolster RMI's financial stability and support its exploration efforts, potentially enhancing the company's stock value. The secured funding and strategic use of the loan for project advancement could positively impact investor confidence.
Investor Reaction:
Analysts may view this funding as a positive step for RMI, providing necessary capital for exploration and operational activities. The terms are relatively standard, with the potential for future equity dilution being a consideration for investors.
Conclusion:
Investors should monitor RMI's progress at the Mpanda Project and the company's ability to meet repayment terms. This funding agreement represents a strategic move to advance key projects and maintain financial health.