Resolution Minerals tops up cash reserves to fund exploration at 64North and Benmara

Resolution Minerals ASX RML gold Benmara East Pogo drilling program 64North Alaska capital raise
The $1.7 million placement and $1.5 million share purchase plan will add $3.2 million to Resolution’s bank balance to fund exploration at its priority projects.

With Resolution Minerals (ASX: RML) pushing ahead with exploration across its portfolio, the company revealed it had received firm commitments to undertake a $1.7 million placement.

The company has received commitments from institutional and sophisticated investors that will participate in the $1.7 million placement and subscribe for Resolution shares at $0.02 each.

Eligible shareholders will also be given a chance to participate under a $1.5 million share purchase plan which will be on the same terms as the placement.

Additionally, placement participants will receive options on a one-for-two basis. The options will come with an exercise price of $0.03 and a two-year expiry period.

Junior minerals exploration incentive credits

Today’s raising news follows Resolution announcing last week the Australian Tax Office had approved its application to participate in the Federal Government’s Junior Minerals Exploration Incentive scheme.

The scheme allows for Resolution to receive an allocation of up to $1.25 million in JMEI credits.

As part of this, the JMEI credits can be distributed to Resolution shareholders as tax credits for the 2021-2022 financial year ending June.

This means Australian resident investors with JMEI credits are entitled to refundable tax offsets or franking credits.

For shareholders to be eligible for these credits they must have participated in Resolution’s fund-raising activities between 1 September 20231 and 30 June 2022.

As a result, shareholders who participate in today’s announced share purchase plan will be eligible.

JMEI credits will be distributed on a pro-rata basis.

Advancing exploration projects

Funds from the $3.2 million capital raisings will be used to progress exploration at Resolution’s 64North and Benmara projects.

Resolution has secured a 30% stake in 64North and is earning 80% of the asset which is adjacent to Northern Star Resources’ (ASX: NST) Pogo gold mine, which has an endowment of 11 million ounces comprising resources, reserves and historic production.

64North is located in Alaska’s Tintina gold province which is home to numerous gold mines and deposits.

Over in Australia, Resolution has pegged up 663 square kilometres of tenements that make up the Benmara project which is believed prospective for copper, silver, lead, zinc and cobalt.

A versatile time-domain electromagnetic survey over Benmara has identified to primary large-scale targets.

Resolution has planned a 2,500m drilling program over the targets which is due to start later this month.

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