STRATEGIC PLACEMENT AND LITHIUM INVESTMENT
• Strategic placement to US and Australian-based investors to raise $1,030,000 at 1.0c per share
• Funds will be used to acquire a ~5% stake in Midwest Lithium AG, a USA focussed lithium exploration company with properties in the Black Hills region of South Dakota (US$500,000) and for Resolution’s working capital (A$250,000)
• Recently appointed US based Director Mr Mark Holcombe will participate on the same terms, investing an additional $100,000 into RML at 1.0 cents, subject to shareholder approval
• Mr Mark Holcombe has been appointed as Executive Director of Corporate Development
• The investment underpins RML’s commitment to grow its exposure to quality new energy metals assets
Resolution Minerals Ltd (RML or Company) (ASX: RML) is pleased to announce a strategic share placement for $1,030,000 at $0.01 per share to US and Australian-based investors (Placement).
The bulk of the funds (US$500k) are to be used to make an approximate 5% equity investment in North American focussed hard rock lithium exploration company Midwest Lithium AG (Midwest Lithium), with properties in the Black Hills district of South Dakota. The investment by RML is being undertaken in Midwest Lithium as part of their larger capital raising of US$2m, which is expected to be sufficient to allow them to complete further claim (tenement) acquisition costs, and continue exploration programs, permitting and working capital. The acquisition of the interest by the Company has been approved by Midwest Lithium’s shareholders and is expected to be completed on or about 25 October 2022.
This investment underpins RML’s commitment to growing its exposure to new energy metals and assets and gives RML shareholders early exposure to an underexplored known spodumene-pegmatite lithium field in an area with significant past spodumene (lithium) production. Dakota is a top-rated North American mining jurisdiction with established large-scale mining operations.
Managing Director Steve Groves commented:
The Company is very excited to be able to take this opportunity 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. We are also really encouraged by the support shown by the US and Australian-based investors who share our long-term vision for the Company.