Resource Mining Corporation Ltd has secured access to a loan facility of up to A$250,000 after entering into a funding agreement with Ven Capital Pty Ltd.
The company can draw down A$50,000 on execution of the facility and on a weekly basis afterwards. Each drawdown will incur a drawdown fee, which can be settled either by:
Deducting 5% of the amount drawn from the drawdown; or
Issuing shares equivalent to 7% of the drawdown value, priced at the average of the five daily volume-weighted average prices (VWAPs) prior to the drawdown.
The facility carries a fixed 10% coupon, payable at maturity, which falls four months from the execution date.
Resource Mining may also elect to issue shares with an aggregate face value of A$275,000 to prepay the principal and interest due at maturity.
Saudi exploration
The facility will assist Resource Mining with its acquisition of AuKing Ltd’s joint venture interests in Saudi Arabia. The company has undertaken a site visit to its Wadi Salamah (G-23) and Shaib Marqan projects in Saudi Arabia as part of its ongoing exploration efforts.
Resource’s geology team is currently conducting geological mapping and rock chip sampling programs, aimed at informing and refining future exploration plans across both tenements.
Earlier exploration at the Wadi Salamah project returned encouraging gold assay results from rock chip sampling, with analysis conducted by Bureau Veritas in Jeddah.
Significant results included gold grades of up to 3.56 grams per tonne, primarily located in the southern section of the G-23 licence application area. This zone will form a key focus of Resource Mining Corporation’s ongoing exploration activities.
The Shaib Marqan project lies within the underexplored Ar Rayn Terrane, a region known for its prospectivity and proximity to several established mineral deposits.