Red Mountain banks $600k in difficult market

Red Mountain Mining have locked away a $600k capital raise by tapping existing shareholders and clients of Pac Partners Ltd who underwrote the company’s recent Share Purchase Plan.

Sixty Two existing Red Mountain shareholders backed the company’s SPP by subscribing for $281 500 worth of shares with clients of Pac Partners Ltd picking up the remaining  $318 500.

The issue price for the New Shares under the SPP is $0.0025c per 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.

Funds raised will be used to drill a couple of exciting high grade at surface targets recently identified by the company at Red Mountain’s Batangas Gold project 120km south of Manila in the Philippines. 

The company is targeting another South West Breccia style resource at its  “Tamarind” target given its proximity to the South West Breccia gold resource and its large, similar sized soil anomaly.

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 underwriters, 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,”

 In addition to drilling the Tamarind target, the funds raised are intended to be used to drill under the exceptional trenches that were recently unearthed by the company.

Exploration results from those trenches in the South West Breccia extended zone include 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).

The company expects to get its drilling program underway shortly.