15/10/2007 - 12:20

Resource Mining Corporation to raise $2.3m in rights issue

15/10/2007 - 12:20

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West Perth-based minerals explorer Resource Mining Corporation Ltd will raise $2.3 million through a renounceable rights issue to shareholders on a one for 10 basis, the company has announced.

West Perth-based minerals explorer Resource Mining Corporation Ltd will raise $2.3 million through a renounceable rights issue to shareholders on a one for 10 basis, the company has announced.

Funds raised from the issue, underwritten by Patersons Securities Ltd, will be used primarily on continuing the current exploration program at Wowo Gap Project in Papua New Guinea.

 

 

The full text of a company announcement is pasted below

Resource Mining Corporation Limited announces a pro-rata renounceable rights issue to shareholders of one (1) new share for every ten (10) shares held at the record date, at an issue price of 5.3 cents per share to raise approximately $2,294,332 before expenses ("Rights Issue").

The Rights Issue has been underwritten by Patersons Securities Limited. Funds raised from the Rights Issue will be used primarily on continuing the current exploration program at Wowo Gap Project in PNG.

RENOUNCEABLE RIGHTS ISSUE

The Directors of Resource Mining Corporation Limited ("RMC") are pleased to announce that a pro-rata renounceable rights issue of one (1) new share for every ten (10) shares held, will be made to shareholders of the Company at the issue price of 5.3 cents per share to raise $2,294,331.89 before expenses ("Rights Issue"). The funds raised from the Issue will be used primarily to continue our exploration programme on the Wowo Gap Project in PNG and increase working capital.

A limited portion of the funds will also be expended on the Argyle Iron Ore Project.

The Rights Issue has been underwritten by Patersons Securities Limited.

The Board of RMC wishes to encourage all shareholders to participate in the Issue.

WOWO GAP PROJECT, PAPUA NEW GUINEA

The Wowo Gap Project, held by Niugini Nickel Ltd under EL 1165, is located about 200km east of Port Moresby, and 35km from the villages of Safia, near the Musa River and Wanigela, situated on Collingwood Bay. The deposit is located at the eastern end of the Didana Range in a topographic saddle some 700m above sea level.

The Company is continuing its exploration programme at Wowo Gap and current diamond drilling is confirming grade and thickness of laterite profile identified in previous drilling. A laterite profile of greater than 20 metres thick is being encountered on the Eastern side of the deposit. In addition to the 100 hole diamond drilling program, the company is also completing a ground penetrating radar survey.

ARGYLE IRON ORE PROJECT, WESTERN AUSTRALIA

The Argyle Iron Ore Project is contained within E80/2389 held by RMC's 75% owned subsidiary Argyle Iron Ore Pty Ltd. It is located approximately 8 kilometres to the east of the Great Northern Highway approximately 170 kilometres by road from Wyndham, Western Australia

RMC is in the process of seeking to dispose of this asset or enter into a Joint Venture with an interested party.

Should you have any further queries, please do not hesitate to contact this office.

A rights issue notice pursuant to section 708AA of the Corporations Act together with an Appendix 3B will be lodged with the ASX on Monday 15th October.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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