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RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015
Sep 8, 2015
65719_rns_2015-09-08_5ca974f5-24ce-4606-8173-f0a5d87cbf73.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX) 9 September 2015
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RED MOUNTAIN RAISES $600,000 THROUGH SHARE PURCHASE PLAN
- Preparations underway to drill exciting new drilling targets at Lobo
Perth, Western Australia: Red Mountain Mining Limited ( ASX:RMX ) is pleased to announce that it has raised $600,000 (before costs) pursuant to the Company’s Share Purchase Plan ( SPP ) that closed on 3 September 2015.
The Company received $281,500 from Shareholders, with 62 Shareholders subscribing for new fully paid ordinary shares ( New Shares ) under the SPP. The SPP was partially underwritten (to $600,000) by PAC Partners Limited ( Underwriter ), who subscribed for the remaining $318,500 of the underwritten amount.
The funds raised are intended to be used, in part, to drill under the exceptional trenching results released 7 September 2015 from the South West Breccia ( SWB ) Main Lode extension (including Trench 50: 7m @ 20.5 g/t Au; Trench 47: 7m @ 11.5 g/t Au; Trench 48: 1.5m @ 25.4 g/t Au and Trench 52: 5m @ 8.83 g/t Au including 1m @ 29.3 g/t Au ), as well as testing the recently identified Tamarind target for a possible repeat of the SWB high-grade gold resource, at the Company’s Lobo prospect at the Batangas Gold Project, 120km south of Manila in the Philippines.
Red Mountain’s Managing Director, Mr Jon Dugdale, said: “This is a good outcome for the Company, given the current challenging market conditions.”
“We are really pleased with the support of both our shareholders and the Underwriter, and we are now well placed to test a couple of very exciting drill targets.”
“The drilling will allow us to potentially upgrade the resource prior to completion of the Definitive Feasibility Study on the Batangas Gold Project,” said Mr Dugdale.
The issue price for the New Shares under the SPP is $0.0025 (0.25 cents) per New Share, representing a 20% discount to the volume weighted average price of Red Mountain’s shares traded on the ASX during the 5 days immediately prior to the issue date of the New Shares.
An Appendix 3B seeking quotation for the New Shares follows.
For further information about Red Mountain please visit www.redmm.com.au or contact: Company Investors: Media Jon Dugdale Matt Birney Managing Director Birney Corporate (+61) 402 298 026 (+61) 419 217 090 (+61) 8 9226 5668 (+61)8 9226 5668 E : [email protected] E : [email protected]
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 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]
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About Red Mountain Mining Limited and the Batangas Gold Project
Red Mountain Mining (ASX: RMX) is a gold exploration and development 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 exploration and mining methods and improving efficiencies to gain significant exploration and production upside.
The Company holds a 100% direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources. Total Mineral Resources at Batangas include Indicated Resources of 2.97 million tonnes @ 2.4 g/t Au, 227,000oz Au and Inferred Resources of 3.22 million tonnes @ 2.1 g/t Au, 218,000oz Au for a total of 6.19 million tonnes at 2.2 g/t Au, 444,000oz Au (ASX announcement 30 June 2014, JORC 2012). The Company is continuing exploration with the objective of upgrading mineral resources at Batangas.
The Company announced an agreement (the Agreement) with London backed, BVI registered, Bluebird Merchant Ventures Ltd (Bluebird) on 23 December 2014. The Agreement includes a two stage funding arrangement totalling US$5.5 million (~A$7 million), earning Bluebird up to 50% of the current wholly owned subsidiary, Red Mountain Mining Singapore Ltd (RMMS), which is the holder of the Philippines based Batangas Gold Project assets.
Funding under the Agreement with Bluebird will allow the Company to complete a DFS on the project, with initial results confirming low capital and operating costs and recovery of over 100,000 ounces of gold during the initial 5 years of a 10 year production plan (ASX announcement 20 November 2014 and updated 23 January 2015).
Final mine development permitting submissions to obtain the Environmental Compliance Certificate (ECC) and the Declaration of Mining Feasibility (DMF) have been submitted to the relevant Government bureau’s and are now proceeding through the final stages of approval by the central Philippines Government (ASX announcement 20 May 2015).
The Company is on the lookout for other advanced gold development and exploration opportunities, which will be reviewed on a continuous basis.
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 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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Cautionary Statement
The production targets referred to in this announcement were first released to ASX on 20 November 2014 and updated on 23 January 2015. They are preliminary and there is no certainty that the production targets or the forecast financial information derived from the production targets, will be realised. All material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed.
Competent Person Statement
The historic information in this report relating to Mineral Resources and post 1 December 2013 Exploration Results 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 2012 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. The Company confirms that the form and context in which the information is presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement. All material assumptions and technical parameters underpinning the Mineral Resource estimates continue to apply and have not materially changed.
Forward Looking Statements
This announcement contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” “potential” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Red Mountain Mining cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.
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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 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]