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All Roads Lead To Rome Resources

The headlines and highlights as far as DRC tin & base metals explorer, Rome Resources are as impressive as they are compelling given tin’s role as the “glue” in the energy transition . This is over and above the way that the success of recent deals such as Helix Exploration (HEX), Energy Green Transition (EGT) and Raspberry Pi (RPI), have left the London market looking like a rather chirpier place than it was just as few months ago.

The more subtle point though, as far as Rome Resources and other companies now coming to market, is that because we have essentially been in a 3 year downturn for small caps, deals have to be nailed on. Therefore, with explorers such as Rome, all the aspects that investors may fret about during a bear market have to be addressed. This includes valuation, funding, pace of development, management, the price and the demand for the commodities in question. With Rome it could be said the company passes all these aspects.

Oak Securities

For instance, to provide an indication of how well received the deal has been via joint broker Oak Securities, originally Rome was looking to raise £4m. In fact, the book which closes imminently, has pushed up to £6m plus. This is something which would allow for a more extended drilling campaign, starting as soon as the middle of July.  The first assay results are due in September. At this pace it could be possible for the company to announce an inferred resource at Kalayi and Mont Agoma for tin by the turn of the year. One would regard the prospects as being impressive given the way that Rome’s tin & copper prospects (a 51% indirect interest) in the Bisie North tin project are within 8km of the world’s highest-grade tin mine – Mpama North.


How do we know that Rome will deliver? Of course, in any small cap situation it is the management and their experience which are key factors. Rome’s exploration team discovered Alphamin’s (AFM.TSX) tin deposits. Indeed, Rome’s management and largest shareholders have been involved in some of the DRC’s biggest success stories such as Tiger Resources, Moto Goldmines, and AVZ Minerals, as well as that of Alphamin.

Pathfinder Minerals

However, as successful deal is not just in what happens on and in the ground. It is also reliant on the way it is structured. In the case of Rome the lay of the land could not be more helpful to those entering the fray following a RTO with Pathfinder Minerals (PFP). The IPO will be priced at 0.3p, valuing Rome at £10m.

Helix Doubled

The sizzle here is that this valuation is at a 40% discount to that of Rome’s current listing price on Canada’s TSXV, and is the lowest Pathfinder has ever raised cash. This combination solves the perennial problem of bed wetting shareholders exiting in the immediate aftermath of a new listing. It also helps that the raise has been placed amongst sticky hands, some one would guess have been on the right side of Oak’s recent Helix Exploration IPO, which has already doubled from the IPO price. It would not be churlish to expect Rome to do the same in coming weeks.

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