Resolution Minerals supplements its cash reserves to finance exploration at 64North and Benmara
With Resolution Minerals (ASX: RML) continuing to explore its portfolio, the company has revealed that it has received firm commitments to undertake a $ 1.7 million placement.
The company has received commitments from institutional and sophisticated investors who will participate in the offering of $ 1.7 million and subscribe for Resolution shares at $ 0.02 each.
Eligible shareholders will also have the opportunity to participate in a $ 1.5 million stock purchase plan that will be under the same conditions as the placement.
In addition, placement participants will receive options on a one-for-two basis. The options will have an exercise price of $ 0.03 and a two-year expiration period.
Junior mining exploration incentive credits
Today’s news follows a resolution announcing last week that the Australian tax office had approved its application to participate in the federal government’s junior mining exploration incentive scheme.
The program allows Resolution to receive a stipend of up to $ 1.25 million in JMEI credits.
In this context, JMEI credits can be distributed to Resolution shareholders as tax credits for the 2021-2022 fiscal year ending in June.
This means Australian resident investors with JMEI credits are entitled to refundable tax offsets or postage credits.
To be eligible for these credits, shareholders must have participated in Resolution’s fundraising activities between September 1, 20231 and June 30, 2022.
Therefore, shareholders who participate in the share purchase plan announced today will be eligible.
JMEI credits will be distributed pro rata.
Advance exploration projects
Funds from the $ 3.2 million fundraising will be used to advance exploration on Resolution’s 64North and Benmara projects.
Resolution has secured a 30% stake in 64North and gains 80% of the assets adjacent to the Pogo gold mine from Northern Star Resources (ASX: NST), with an 11 million ounce endowment including resources , reserves and historical production.
64North is located in the gold province of Tintina, Alaska, which is home to numerous gold mines and deposits.
In Australia, Resolution has established 663 square kilometers of properties that make up the Benmara project, considered promising for copper, silver, lead, zinc and cobalt.
A multipurpose time-domain electromagnetic survey over Benmara identified large-scale primary targets.
Resolution has a 2,500m target drill program scheduled to begin later this month.