Resource Mining Raises $5M via Convertible Securities to Fund Multi-Commodity Projects
Resource Mining Corporation has locked in a $5 million convertible securities facility to fund its expanding exploration programs across Tanzania, Saudi Arabia, and Finland. The initial $1.3 million drawdown supports ongoing copper-gold drilling and new gold ventures.
- Secured $5 million funding via convertible securities from RiverFort Global Capital
- First $1.3 million drawdown completed on July 31, 2025
- Funding to advance copper-gold drilling at Mpanda and gold exploration in Saudi Arabia
- Continued exploration on Tanzanian nickel and Finnish lithium projects
- Convertible securities carry 7% fixed coupon and 12-month maturity
Funding Boost for Multi-Commodity Exploration
Resource Mining Corporation Limited (ASX, RMI) has taken a significant step forward by securing a $5 million funding facility from RiverFort Global Capital Ltd. This capital injection, structured through convertible securities, is designed to accelerate the company’s exploration activities across several promising mineral projects in Tanzania, Saudi Arabia, and Finland.
The first tranche of $1.3 million was drawn down on July 31, 2025, marking the beginning of a three-year funding term. This initial drawdown will primarily support the ongoing rotary air blast drilling at the Mpanda copper-gold project in Tanzania, as well as advancing the recently announced option to acquire gold exploration rights in Saudi Arabia.
Strategic Focus on Copper, Gold, Nickel, and Lithium
Resource Mining’s portfolio is diversified across critical minerals, with copper and gold exploration at the forefront. The Mpanda and Mbozi projects in Tanzania lie within the Ubendian Orogenic Belt, a region known for its rich deposits of nickel, copper, and gold. Alongside these, the company maintains nickel exploration at several Tanzanian sites, including the Kabanga North project, which is geologically adjacent to a major nickel resource.
In Finland, Resource Mining is pursuing lithium exploration through its Kola and Hirvikallio projects, situated in a region recognized for significant lithium deposits. The company’s strategy reflects a balanced approach, targeting both base and precious metals, while also positioning itself in the growing lithium market.
Funding Terms and Shareholder Implications
The funding agreement includes a 7% fixed coupon payable in cash at maturity, with convertible securities maturing 12 months after issuance unless converted or redeemed earlier. The initial conversion price is set at 2.1 cents per share, with options issued at a 3-cent exercise price and a 24-month maturity. Subsequent drawdowns will have conversion prices set at a 30% premium to the prevailing share price, reflecting a structure designed to balance investor returns with shareholder dilution.
Executive Chairman Asimwe Kabunga emphasized the importance of maintaining strong funding to deliver on exploration milestones and create long-term shareholder value. The company’s ability to secure this facility underscores investor confidence in its multi-commodity exploration strategy and regional expertise, particularly in Tanzania where the board has strong local ties.
Looking Ahead
With drilling underway and exploration options expanding, Resource Mining is well-positioned to advance its projects through critical development stages. The coming months will be pivotal as assay results from the Mpanda copper-gold drilling and progress on the Saudi Arabian gold option emerge. These outcomes will be closely watched by investors eager to see tangible progress from the newly secured funding.
Bottom Line?
Resource Mining’s fresh capital injection sets the stage for a critical exploration phase that could reshape its resource potential and shareholder value.
Questions in the middle?
- What initial assay results will the Mpanda copper-gold drilling yield in the coming months?
- How will the Saudi Arabia gold exploration option progress and impact the company’s portfolio?
- What are the potential dilution effects on shareholders if convertible securities are fully converted?
