Rome Resources (RMR ) has conditionally raised approximately £1.2 million by way of a direct subscription with existing shareholders.

Rome will issue 400 million shares at 0.3 per share, representing a discount of approximately 8.6% to the five-day volume-weighted average price.

The funds will be used to continue drilling at the Kalayi project in the Democratic Republic of Cong, to provide further resource expansion beyond the next planned resource update. 

Funds will also be allocated to drill the two high-graded copper and tin targets at Mont Agoma and to conduct an airborne geophysical survey which is currently being planned in order to assess further exploration targets within the remit of Rome Resources' licences.

The company has also agreed to issue 24 million warrants to the introducer of the subscription, with each warrant entitling the holder to acquire one share at the issue price at any time in the five-year period from the date of admission

Separately, in order to align certain members of management’s long-term interests with that of the company's shareholders, including through, amongst other ways, the encouragement of increasing long-term shareholder value, it is intended that certain of the directors and members of the company's management will be awarded a conditional bonus in the form of shares at the issue price. 

The award is anticipated to be conditional on the company entering into a strategic partnership in relation to its Kalayi or Mont Agoma project. 

"We are extremely grateful for the continued backing of our existing shareholders, whose additional funding, secured following our most successful drilling campaign to date at Kalayi, positions the Company to further accelerate growth and expand our tin resource,” said Paul Barrett, Rome’s chief executive.

“This strong support reinforces confidence in the scale and potential of the company's projects."

 

View from Vox

 

The company believes that the planned Kalayi resource update will further strengthen its position regarding discussions with potential strategic partners, and setting a bonus up a bonus structure that will implement on the signing of a deal shows that management is keen to get a transaction done. Such a deal has been in the wind for a while, but much more is known about Rome’s assets these days. The grade is good, the extent is significant, and the overall tonnage is about to be materially updated. Will a deal come soon? Hard to say. But it does at least now appear to be looming on the horizon.