Red Mountain Mining’s (ASX:RMX) has signed a strategic financing agreement with a UK-based investor which will carry the explorer’s Batangas gold project in the Philippines through initial mine development.
The Batangas Project is located within the Batangas mineral district, within a mineralised corridor termed the West Luzon Volcanic Arc.
The Company’s flagship Batangas Project is located in the Philippines, on the main northern island of Luzon, only 120 kilometres south of the Philippines Capital, Manila.
The Philippines, and particularly Luzon Island, is strongly endowed with major gold and copper-gold resources.
The Company is well established at Batangas, with granted Mineral Production Sharing Agreements (MPSA’s – the Philippines equivalent of Mining Licences) over established resources, with immediate upside exploration potential, and a development plan focused on taking the initial low cost project to development and production.
The deal broached earlier this month with Bluebird Merchant Ventures increases Batangas’ stage-1 funding from US$1 million (A$1.4 million) to US$1.7 million.
The Batangas Project is located within the Batangas mineral district, within a mineralised corridor termed the West Luzon Volcanic Arc.
The Company’s flagship Batangas Project is located in the Philippines, on the main northern island of Luzon, only 120 kilometres south of the Philippines Capital, Manila.
The Philippines, and particularly Luzon Island, is strongly endowed with major gold and copper-gold resources.
The Company is well established at Batangas, with granted Mineral Production Sharing Agreements (MPSA’s – the Philippines equivalent of Mining Licences) over established resources, with immediate upside exploration potential, and a development plan focused on taking the initial low cost project to development and production.
The deal broached earlier this month with Bluebird Merchant Ventures increases Batangas’ stage-1 funding from US$1 million (A$1.4 million) to US$1.7 million.
This will allow for the funding of Batangas advancement through definitive feasibility, final permitting and the start of the development phase.
On completion of stage-1 funding the parties will form a 25% Bluebird/75% Red Mountain incorporated joint venture and project expenditure will be funded according to the parties’ respective JV interests.
The agreement also gives Bluebird a number of further investment options, including an opportunity to increase its equity in Red Mountain’s Singapore subsidiary to a 50.1% stake.
A variation on a previously established loan agreement with Bluebird will cover any shortfall in the funding to November.
On completion of stage-1 funding the parties will form a 25% Bluebird/75% Red Mountain incorporated joint venture and project expenditure will be funded according to the parties’ respective JV interests.
The agreement also gives Bluebird a number of further investment options, including an opportunity to increase its equity in Red Mountain’s Singapore subsidiary to a 50.1% stake.
A variation on a previously established loan agreement with Bluebird will cover any shortfall in the funding to November.
The new financing agreement with Bluebird is a positive milestone for Red Mountain as it will provide funding to advance Batangas to definitive feasibility, final permitting and initial development.
The endorsement will more immediately support follow-up of extremely tantalising rock chip and soil anomaly readings that could double the existing resource if the targets prove as richly endowed as suspected.
Success in this upcoming exploration work may represent a price catalyst for Red Mountain and contribute to a step change in the scope and value of Batangas.
The endorsement will more immediately support follow-up of extremely tantalising rock chip and soil anomaly readings that could double the existing resource if the targets prove as richly endowed as suspected.
Success in this upcoming exploration work may represent a price catalyst for Red Mountain and contribute to a step change in the scope and value of Batangas.
Source : Proactive investors Australia
