RMC to tap Canadian capital

RESOURCE Mining Corporation is setting its sights on a potential Toronto Stock Exchange listing in the short to medium term.
RMC to tap Canadian capital RMC to tap Canadian capital RMC to tap Canadian capital RMC to tap Canadian capital RMC to tap Canadian capital

Earlier this month, the company commissioned independent geological consultancy GeoRes to produce a study to meet Canadian National Instrument (NI) 43-101 standards for technical reporting of mineral projects in an effort to open up new capital markets.

Davies said gaining access to Canadian capital was an important part of the company's strategy and would help in the funding of future projects, such as Wowo Gap.

"A placement with sophisticated North American investors or a potential listing on the Toronto Stock Exchange could allow greater access to the North American market and its significant funding base," Davies told PNGIndustryNews.net.

"A potential TSX listing is a short to medium term option being considered, that could assist us to secure significant ongoing funding for development of our Wowo Gap project and associated leaching technology."

Davies said he had spoken to potential investors in North America who were excited by the potential of RMC's Wowo Gap project.

"North American investors are more comfortable investing in under-explored areas like Papua New Guinea compared to Australian investors at present," he said.

"We believe the Canadian market has a generally more positive attitude towards junior explorers with nickel laterite tenements outside of Australia, like Resource Mining."

Resource Mining raised $1 million this week to aid its development in Papua New Guinea, with more than 94 million fully paid ordinary shares in the company issued via a placement to sophisticated investors at a price of 1 cent per share to raise nearly $950,000.

RMC has achieved a number of recent milestones this year including developing innovative drilling and sampling exploration procedures using a custom-made man-portable core drilling rig capable of much faster, higher quality and more cost effective drilling to be used by a largely unskilled local workforce.

"We've also had great success in trials using our new green-tech organic leaching process and some of the new funding will go towards the next stage of these trials," RMC managing director Warwick Davies.

In late April, a second round of analysis on the technology confirmed its viability, prompting industrial-scale testing which will form the basis of a planned scoping study.

A new program of test work is being designed with the objective of developing a more comprehensive understanding of the science and leach kinetics behind RMC's green-tech leaching process. The program will also investigate metal recovery options.

RMC hopes its leaching technology will provide a more cost-effective alternative to the standard high-pressure acid leaching process originally looked at for Wowo Gap and in use by laterite nickel miners in Western Australia and around the globe.

However, further funds will have to be raised to advance trials for the leaching technology.

A variety of strategies are currently underway including the possibility of funds being sourced from Australia and North America, Davies said.

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