Rome Resources seeks new investment ahead of drilling work in the DR Congo
Rome Resources Plc is planning to bring in a further £200,000 of new investment as it prepares to start drilling at its tin and copper prospects in the Democratic Republic of the Congo.
The London-listed explorer, which recently raised £1.9 million, plans to issue 100 million new shares at 0.2p each, mainly to JLE Group.
That price is about 10.5% above the company’s most recent closing price of 0.181p. A placing is a way for a company to sell newly created shares directly to selected investors rather than through a public offer.
Investors taking part will also receive a warrant for every share they buy. A warrant gives the holder the right, but not the obligation, to buy a new share at a fixed price, in this case 0.4p, within three years.
JLE Group will take most of the placing, with Zeus Capital acting as bookrunner.
Rome will also issue a further 100 million warrants to Zeus, exercisable at the same 0.4p level for three years. The new shares will rank equally with existing stock, carrying the same rights to any future dividends.
Paul Barrett, Rome’s chief executive, said: “This support from JLE provides funding for any additional work the company wishes to undertake associated with the upcoming drilling programme on Bisie North.
“Management is looking forward to commencing operations soon and will provide regular updates of its progress and results.”
The funds are earmarked for potential extra drilling around the Kalayi and Mont Agoma discoveries, both part of Rome’s exploration ground in the east of the country.
