- Resolution Minerals (RML) is raising $1.03 million to acquire a 5 per cent stake in US lithium explorer Midwest Lithium
- The company plans to place 103 million shares at one cent per share to Australian and US investors to raise the funds
- Recently-appointed executive director Mark Holcombe will be issued 10 million shares to raise an additional $100,000
- Resolution Managing Director Steve Groves says the company is “very excited” to invest in a “quality hard-rock lithium asset” in the world-class Black Hills region of South Dakota
- RML shares are trading grey at 1.1 cents at 1:41 pm AEDT
Resolution Minerals (RML) is raising $1.03 million to acquire a 5 per cent stake in US lithium explorer Midwest Lithium.
The company has launched a share placement under which it plans to issue 103 million shares at one cent per share to Australian and US investors. This represents a 2.3 per cent discount to Resolution’s 15-day volume-weighted average price (VWAP) and a 3 per cent discount to its five-day VWAP.
Additionally, the company’s recently appointed US-based Executive Director for Corporate Development, Mark Holcombe, has committed to subscribe for an additional $100,000 worth of shares at the same price. If shareholders approve the investment, RML will issue Mr Holcombe 10 million shares at one cent per share.
Resolution will use roughly US$500,000 (A$793,400) of the money raised to acquire a 5 per cent stake in US-focused explorer Midwest Lithium, which has projects in South Dakota’s Black Hills region.
Black Hills is regarded as a world-class lithium region, with a number of brownfield exploration targets and large pegmatite fields.
The acquisition is expected to be completed on October 25 and aligns with Resolution’s plan to grow its exposure to new energy metals assets.
RML Managing Director Steve Groves said the company was “very excited” to invest in a “quality hard-rock lithium asset in a top mining jurisdiction”.
“Along with the upcoming drilling program at the Wollogorang copper project, it is another step in advancing our new energy metals strategy and creating tangible value for RML shareholders,” Mr Groves said.
The materials stock will use the rest of the money raised for working capital.
RML shares were trading grey at 1.1 cents at 1:41 pm AEDT.