Resource Mining Corporation Limited announced on October 22 that it has secured a bridging loan of up to A$1 million (US$690,000) from RiverFort Global Capital Ltd. This funding will support their ongoing exploration activities at the company's Mpanda copper gold project in Tanzania, along with general working capital needs.

Key Points of the Funding Agreement-

•             Loan Amount: A$1 million (with an initial drawdown of A$500,000)

•             Term: Four months from the execution date

•             Interest: 10% fixed coupon paid in cash on the maturity date

•             Security: First-ranking general security over the Company and its subsidiaries

•          Cash payment: 5% of the drawdown amount will be deducted from the gross proceeds (the total amount of money the company receives).

•             Share payment: 7% of the drawdown amount will be settled by issuing shares of the company to the lender.

According to the terms of the investment, RMI will issue 5 million options with a 3-year maturity and an exercise price of A$0.0225 (2.25 cent) per share upon the first drawdown. If the loan is not repaid in cash on the maturity date, it can be converted into a convertible note with flexible conversion terms. The convertible note offers two conversion options: a fixed price conversion with a 50% premium to either the extension price or the reference price, and a 10% discount to the average daily volume-weighted average price (VWAP) over the 10 trading days before conversion.

RMI can redeem the outstanding principal and interest if the share price falls below a certain level. Additionally, the Company will issue an additional 10 million options exercisable at A$0.0225 per share with a 36-month expiry. A legal fee deposit of A$10,000 will be paid by RMI upon execution of the agreement. The maximum number of securities issuable under the agreement is capped at 100 million, including potential conversion shares, issued shares, and shares from options.

Looking Forward:

This funding agreement is a positive development for Resource Mining Corporation. The additional capital will allow RMI to advance exploration efforts at their flagship Mpanda project, potentially leading to significant discoveries of copper and gold. The agreement demonstrates investor confidence in the project's potential and provides RMI with the flexibility to manage its working capital needs.

About RMI –

RMI is a global mining company dedicated to sustainable value creation. They focus on developing and operating mineral commodity assets worldwide.   Resource Mining Corporation envisions unlocking the potential of its world-class resource opportunities with the backing of its key stakeholders. The company’s mission is to generate wealth from mineral commodities through innovative technical, marketing, and financial expertise.