Rome Resources Debuts on AIM - Strategic Tin Play Amid Surging Demand

• Rome Resources Plc completed its acquisition of Rome Resources Ltd and was admitted to trading on AIM.
• The company raised £4.0 million through the issue of new shares at 0.30 pence per share.
• Rome Resources has identified three prospective areas with high-grade tin potential in proximity to a world-class tin mine.
• The company's exploration team has a track record of discovering significant tin resources.
• Global tin prices are 37% higher than their 12-month low, driven by energy transition and AI sector growth.

Rome Resources Plc (AIM: RMR) has marked a significant milestone with the completion of its acquisition of Rome Resources Ltd and subsequent admission to trading on AIM. This development presents a compelling opportunity for investors interested in the strategic metals sector, particularly tin, which is increasingly critical in the global push towards renewable energy and advanced technologies.

The Acquisition & Admission

On July 26, 2024, Rome Resources Plc successfully completed its acquisition of Rome Resources Ltd and saw its enlarged share capital admitted to trading on AIM. This move positions the company to capitalise on the growing demand for tin, a metal that plays a crucial role in the ongoing energy transition and the burgeoning artificial intelligence (AI) sector.

The company's successful fundraise of approximately £4.0 million, achieved through the issue of 1,333,333,330 new ordinary shares at an issue price of 0.30 pence per share, demonstrates strong investor confidence in Rome Resources' potential. With a market capitalisation of approximately £14.6 million upon admission, based on the issue price, the company is well-positioned to execute its exploration and development strategy.

Strategic Assets & Exploration Potential

Rome Resources' primary asset, the Bisie North Tin Project, is strategically located in an area with significant tin potential. The company has identified three prospective areas within the Projects that exhibit high-grade tin in soil anomalies, indicating the possibility of substantial mineral deposits.

Notably, the Bisie North project is situated just 8km away from Alphamin's Mpama North mine, which is reported by the Edison Group in 2023 as the world's highest-grade tin mine. This proximity to a world-class resource is a strong indicator of the geological potential of Rome Resources' assets.

Paul Barrett, Chief Executive Officer of Rome Resources Plc, emphasised the strategic importance of the company's assets, stating:

"Our firm view is that Bisie North has the potential to be a highly strategic tin project to global supply. I look forward with much enthusiasm to updating shareholders in the months ahead."

Experienced Exploration Team

One of Rome Resources' key strengths lies in its exploration team, which has a proven track record of success in the tin sector. Notably, this team was responsible for discovering Alphamin's tin resources, demonstrating their expertise in identifying and developing significant mineral deposits in the region.

This experience and knowledge will be crucial as Rome Resources advances its exploration efforts. The company has outlined a defined roadmap to resource definition, with immediate near-term drilling anticipated to advance the Projects from the outset.

Market Dynamics & Tin Demand

The global tin market is currently experiencing favourable conditions for producers and explorers. As of the announcement date, the price of tin was 37% higher than its lowest point in the previous 12 months. This price strength is underpinned by several key factors:

• Energy Transition: The ongoing global shift towards renewable energy sources and electrification is driving increased demand for tin, which is used in various clean energy technologies.
• Supply Disruptions: Geopolitical events and other factors have led to disruptions in traditional tin-producing countries, tightening global supply.
• AI Sector Growth: The rapid expansion of the artificial intelligence sector is expected to contribute to an increase in demand for electronics and electrification, further boosting tin consumption.

These market dynamics create a favourable environment for Rome Resources as it seeks to develop its tin assets.

Fundraising & Financial Position

The successful raising of approximately £4.0 million provides Rome Resources with the financial resources to advance its exploration program. This capital injection will enable the company to implement its near-term drilling plans and move the Projects up the value chain.

Paul Barrett commented on the significance of the fundraise:

"Today marks a new beginning and we are hugely pleased to have successfully delivered Rome Resources to London's AIM market whilst raising approximately £4.0 million. The fundraise demonstrates the appetite amongst investors for the Projects in the Democratic Republic of Congo and enables us to advance exploration workstreams, as we seek to move the Projects up the value chain."

This statement highlights the company's success in attracting investor interest and its readiness to deploy capital towards value-creating activities.

Exploration Strategy & Future Prospects

With its newly acquired assets and financial resources, Rome Resources is poised to implement an aggressive exploration program. The company's immediate focus will be on advancing its near-term drilling plans to better define the resource potential of its projects.

Given the high-grade tin anomalies already identified and the proximity to a world-class tin mine, there is significant potential for Rome Resources to make substantial discoveries. The company's experienced exploration team, with their track record of success in the region, further enhances the probability of positive outcomes.

As exploration progresses, investors can expect a steady flow of news and updates regarding drilling results, resource estimates, and project advancements. Positive results could potentially lead to a re-rating of the company's shares and increased investor interest.

Risks & Considerations

While Rome Resources presents an exciting opportunity, investors should be aware of the risks associated with early-stage exploration companies. These include:

• Exploration Risk: There is no guarantee that exploration activities will result in the discovery of economically viable mineral deposits.
• Commodity Price Risk: The company's prospects are closely tied to the price of tin, which can be volatile and influenced by various global factors.
• Operational Risks: Mining operations in the Democratic Republic of Congo can face challenges related to infrastructure, political stability, and regulatory environments.
• Financing Risk: Future development of any discoveries may require additional capital, potentially leading to dilution for existing shareholders.

The Investment Thesis for Rome Resources

• Exposure to high-potential tin exploration projects in a proven geological setting
• Proximity to world-class tin mine (Alphamin's Mpama North) indicates geological prospectivity
• Experienced exploration team with a track record of significant tin discoveries
• Strong market fundamentals for tin, driven by energy transition and AI sector growth
• Well-funded with £4.0 million raised to advance exploration activities
• Listed on AIM, providing liquidity and access to capital markets
• Potential for significant value creation through successful exploration and resource definition

Rome Resources Plc's admission to AIM and acquisition of Rome Resources Ltd represent a significant opportunity in the tin exploration sector. The company's strategic assets, experienced team, and favourable market conditions position it well for potential success. With the global demand for tin driven by the energy transition and technological advancements, Rome Resources offers investors exposure to a critical metal with growing importance. While early-stage exploration carries inherent risks, the company's proximity to a world-class tin resource and its team's track record provides a solid foundation for its endeavours. Investors interested in the strategic metals sector should closely monitor Rome Resources' progress as it advances its exploration activities and seeks to define valuable tin resources.

Macro Thematic Analysis

The global transition towards renewable energy and the rapid growth of the artificial intelligence sector are driving a surge in demand for strategic metals, with tin emerging as a critical component in this evolving landscape. Tin's unique properties make it essential in soldering applications for electronics, solar panels, and various clean energy technologies.

The energy transition, in particular, is a significant driver of tin demand. As countries worldwide push to reduce carbon emissions and increase renewable energy capacity, the demand for solar panels, wind turbines, and energy storage systems is growing exponentially. Tin plays a crucial role in these technologies, particularly in the production of solar cells and the manufacturing of batteries.

Simultaneously, the artificial intelligence sector is experiencing explosive growth, driving increased demand for advanced electronics and computing hardware. This trend is expected to contribute significantly to the overall demand for tin in the coming years.

Supply constraints are also shaping the tin market. Geopolitical tensions and environmental concerns have led to disruptions in traditional tin-producing countries, tightening global supply. This supply-demand imbalance has contributed to the recent strength in tin prices, which were reported to be 37% higher than their 12-month low at the time of Rome Resources' admission to AIM.

The confluence of these factors – growing demand from the energy and technology sectors, coupled with supply constraints – creates a favourable macro environment for tin explorers and producers. Companies like Rome Resources, with strategic assets in proven geological settings, are well-positioned to capitalize on these trends.

"Bisie North has the potential to be a highly strategic tin project to global supply."

This statement encapsulates the significance of Rome Resources' projects in the context of the growing global demand for tin and the need for new, reliable sources of this critical metal.