Rome Resources announces potential acquisition and C$2.5 million loan
Rome Resources, who recently confirmed open mineralisation at depth at Bisie North, have announced they have entered into a non-binding heads of terms for a potential acquisition by UK company Pathfinder Minerals Plc.
If completed, this proposed acquisition would constitute a reverse takeover of Rome by Pathfinder. As a part of this, Pathfinder has agreed to provide an unsecured loan of up to C$2.5 million for continued exploration and development of its Bisie North Tin Project, which neighbours Alphamin Resources’ Mpama North mine.
Dr Georg Schnura, Non-Executive Director of Rome, commented: “Following completion of the Proposed Acquisition, Rome Resources will have access to the UK’s deep pool of liquidity as well as the international investor base positioned in London…”
Paul Barrett, Executive Director of Pathfinder, commented: “Historically the UK market has been a natural home for exploration companies with operations in Africa, and in this respect we are confident that the Proposed Acquisition will be well received.”
“Notwithstanding the need for further drilling”, Barrett continued, “the results of the maiden drill campaign have shown that there is potential for a world class discovery in these permits in terms of grades.”
Pathfinder will provide the loan into two tranches: the first tranche of C$500,000 will be paid immediately following this announcement, and the remaining C$2 million will be paid upon the completion of a separate financing activity at Pathfinder. The loan will carry a fixed interest payment of 10% annually.
The Proposed Acquisition is subject to a number of factors, including the completion of due diligence, regulatory and shareholder approval, and final negotiation of a binding acquisition agreement.
The Proposed Acquisition and C$2.5 million loan will provide Rome Resources liquidity for its upcoming drilling campaign, due to commence by the end of 2023. The prospect is of significant interest given its proximity to Alphamin Resources’ high-grade Bisie mine and the added silver-copper-zinc mineralisation.
