RMI Reports High-Grade Copper-Gold Results, $1M Funding, and Saudi JV Opportunity
Resource Mining Corporation reports promising copper-gold exploration results at its Mpanda project in Tanzania, secures $1 million in loan funding, and gains an option to acquire a 70% stake in a Saudi Arabia joint venture.
- Strong copper-gold assay results from Mpanda project in Tanzania
- Option secured to acquire 70% interest in Saudi Arabia gold JV
- $1 million bridging loan funding obtained to support exploration
- Ongoing geological mapping and sampling to refine drill targets
- Cash position at $241k with additional $500k loan facility available
Exploration Momentum at Mpanda Copper-Gold Project
Resource Mining Corporation Limited (ASX: RMI) has delivered a robust quarterly update for December 2024, highlighting significant progress at its Mpanda copper-gold project in Tanzania. The company’s exploration activities continue to affirm the prospectivity of its extensive 1,055.96 km² tenement package surrounding the high-grade Katavi Copper/Gold Mine.
Recent rock chip sampling and mapping of artisanal workings have revealed impressive grades ranging from 0.5 g/t to 36.7 g/t gold and 0.3% to nearly 14% copper. These results reinforce the presence of multiple copper-gold mineralisation zones aligned along a northwest-southeast trend, providing a solid foundation for targeted drilling campaigns planned for the March 2025 quarter.
Strategic Expansion via Saudi Arabia Joint Venture Option
Post quarter end, RMI secured an option to acquire a 70% interest in a joint venture with AuKing Mining Limited (ASX: AKN) focused on gold projects in Saudi Arabia. This opportunity, contingent on the grant of the Shaib Margan licence by Saudi authorities, allows RMI to assume AuKing’s rights and obligations in the JV without upfront consideration. The move signals RMI’s intent to diversify its portfolio and tap into the burgeoning Middle Eastern gold exploration sector.
Financial Position and Funding to Accelerate Exploration
To underpin its exploration ambitions, RMI secured a $1 million bridging loan facility from RiverFort Global Capital Ltd, with an initial drawdown of $500,000 completed during the quarter. The funds are earmarked primarily for advancing the Mpanda project and other exploration initiatives. Despite a cash balance of $241,000 at quarter end, the company’s total available funding, including the undrawn loan portion, stands at $741,000, providing approximately 2.3 quarters of operational runway based on current expenditure levels.
Exploration expenditure for the quarter was approximately $201,000, reflecting ongoing fieldwork, sampling, and geological modelling. No mine production or development costs were incurred, consistent with the company’s focus on early-stage exploration.
Outlook and Next Steps
Looking ahead, RMI plans to report further assay results from soil sampling and reverse circulation drilling across multiple prospects within the Mpanda project during the March quarter. Concurrently, field activities in Finland are set to resume with rock chip sampling on the Köyhäjoki lithium project, weather permitting.
The company’s strategic option to expand into Saudi Arabia adds a new dimension to its growth strategy, potentially unlocking value from a region with emerging gold exploration potential. Investors will be watching closely for the licence grant and subsequent exploration developments.
Bottom Line?
Resource Mining’s blend of solid exploration results, fresh funding, and strategic JV options positions it for a pivotal 2025.
Questions in the middle?
- Will RMI exercise its option to acquire the Saudi Arabia JV interest, and on what timeline?
- How will upcoming drill results at Mpanda influence resource definition and project valuation?
- What are the company’s plans to extend its cash runway beyond the current 2.3 quarters?
