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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013
Aug 5, 2013
65719_rns_2013-08-05_8efad350-19cc-4ff7-8dc2-7b79fd13be57.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
6 August 2013
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RED MOUNTAIN COMPLETES SIGNIFICANTLY OVERSUBSCRIBED SHORTFALL PLACEMENT
Perth-based gold explorer, Red Mountain Mining Limited (ASX:RMX) (“Red Mountain” or “the Company”) today completed the placement of all of the shortfall for its pro rata $2.8 million renounceable rights issue offer (“Rights Issue”), as announced on 15 May 2013, having received firm commitments to subscribe for the shortfall securities, thereby achieving the total target objective of $2.8 million. The success of the capital raising means Red Mountain is now fully funded to conduct its current drilling program that is testing defined, high-grade, epithermal gold Exploration Targets on its Lobo prospect at Batangas Gold Project, 120 kilometres south of Manila, in the Philippines.
In addition to the high-grade resource definition program, Red Mountain will also assign part proceeds from the capital raising to complete a scoping study to demonstrate the viability of a potential high-margin gold project at Batangas.
Having been significantly oversubscribed, the Company will allot the remaining shortfall on or about 12 August 2013 subject to the clearance of funds. The shortfall comprises 221,033,039 New Ordinary Shares, 110,516,520 New Short-Dated Options, exercisable at 1.5 cents each on or before 30 June 2014, and 55,258,260 New Long-Dated Options, exercisable at 3 cents each on or before 30 June 2016, for a total consideration of $2.21 million (before costs).
Total funds raised under the Rights Issue will be $2.8 million, or $2.5 million net of costs.
Red Mountain Managing Director Mr Jon Dugdale: “We are very pleased that the Company has been so well supported in this Rights Issue and we can now press forward with our more intensive drilling and development programs at the Batangas Gold Project.”
The issued capital of the Company following allotment will be as follows:
| The issued capital of the Company following allotment will be as follows: | |
|---|---|
| Fully paid ordinary shares | 468,930,0651 |
| Listed Options exercisable at $0.015 each on or before 30 June 2014. | 140,679,015 |
| Listed Options exercisable at $0.03 each on or before 30 June 2016. | 97,839,501 |
| Performance Shares (conversion subject to Conditions) expiring 30 October 2013 | 50,000,0002 |
| Unlisted Options exercisable at 20 cents each on or before 30 June14 2014. | 27,728,1253 |
| Unlisted Options exercisable at 20 cents each on or before 12 September 2013. | 1,718,4334 |
| Unlisted Options exercisable at 20 cents on or before 15 September 2016. | 15,000,000 |
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14,513,151 Shares escrowed to 1 September 2013; 100,000,000 Shares escrowed to 30 October 2013. 2. 50,000,000 Fully paid ordinary shares escrowed to 30 October 2013 and either cancelled or released from escrow upon successful completion of certain milestones.
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18,428,125 Unlisted Options escrowed to 1 September 2013.
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1,718,433 Unlisted Options escrowed until 1 September 2013.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au [email protected]
Michael Wolley Non-Executive Director Shannon Coates Company Secretary
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The completion of the Rights Issue will enable the Company to complete the program outlined in the presentation accompanying the Rights Issue, as released on 15 May 2013. This program will include a continuation of the drilling program commenced on 1 August 2013 that is to be conducted in two stages and is ultimately aimed at converting Exploration Targets to new highgrade, near surface, Mineral Resources. The potential Mineral Resource increase will upgrade the resource base already defined totaling an Indicated and Inferred Resource of 5.78 million tonnes at 2.2 g/t Au, containing 408,000oz Au (using a lower 0.85 g/t Au cut off, see breakdown below), and potentially enhance the economic viability of the planned scoping study into a gold development project at Batangas.
For further information about Red Mountain please visit www.redmm.com.au or contact:
Company Investors Media Jon Dugdale Kevin Skinner Managing Director Field Public Relations (+61) 402 298026 (+61) 414 822631 (+61) 8 9226 5668 (+61)8 8234 9555
About Red Mountain Mining Limited
Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company which listed on the ASX in September 2011. The Company’s strategy is to unlock the potential of ‘under-developed’ gold and polymetallic projects in the greater Asian region by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.
The Company holds direct and indirect interests in tenements in the Philippines that contain significant gold resources and several high-quality copper-gold prospects.
Total Mineral Resources at Batangas at a 0.85 g/t Au lower cut off include Indicated Resources of 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and Inferred Resources of 3.02 million tonnes @ 2.1 g/t Au, 200,000 oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (January 30[th] 2013, 2004 JORC). The company is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel, and Lobo (eg Japanese Tunnel, Pica, Ulupong, West Drift). The company will continue drilling with the objective of increasing the size and grade of the Mineral Resources at Batangas then completing a scoping study to demonstrate the viability of a potential high-margin gold project development.
Competent Person Statement
The information in this report relating to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ASX code: RMX ABN 40 119568106
COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director
CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au [email protected]