Resource Mining (RMI) has tapped investors for $500,000 to fund preparation work at the Kabulwanyele nickel project in Tanzania.
The KNP nickel project is located in the Mpanda District, approximately 35km from the western shore of Lake Tanganyika. The area is part of the western limb of East African Rift systems. The project is owned by Eastern Nickel Tanzania, a subsidiary of Eastern Nickel, which was recently acquired by Resource Mining. Kabunga Holdings holds a 25% interest in Eastern Nickel.
Geological mapping program
Laterite hills at Kabulwanyele are prospective for nickel, cobalt, and manganese. Earlier this month, RMI identified a coincident nickel and cobalt anomaly from soil and rock chip samples over mapped laterite during its initial exploration program.
The geological mapping program concentrated in the area where historical exploration had identified the presence of Nickel laterite mineralization. Continuous ferruginous siliceous laterites have been mapped in a hilly area which form three hill grouping
According to Chairman, Bill Mackenzie, the company is excited by the results and said follow-up exploration is required. In particular, he said a drilling program will be undertaken to test mineralisation limits.
This capital raise will fund preparation work for exploration programs for the 2022 field season, and will also be used for debt servicing and working capital. More than 31.2 million shares will be issued at 1.6 cents each. The shares will be issued in two tranches, initially with 14,375,000, and then upon shareholder approval the remaining 16,875,000 will be issued. Settlement of tranche one is anticipated on or before December 9.