Perth based Red Mountain Mining has renegotiated its deal with UK based strategic funding partner Bluebird Merchant Ventures Ltd for its Batangas Gold project in the Philippines.
Bluebird have agreed to increase their stage 1 funding package from USD$1m to USD$1.7m to ensure the company is fully funded to complete its definitive feasibility study, permitting and drilling program.
In the original deal between the two companies, Bluebird was to earn 15% of the project for its initial USD$1m outlay. They will now earn 25% for the first USD$1.7m outlay in stage 1.
Red Mountain Managing Director Jon Dugdale said, “We are very pleased that our strategic financing partner has agreed to significantly increase the Stage 1 funding under the Agreement. We believe this provides a compelling endorsement of the Batangas Gold Project. ”
“The additional funding will provide the opportunity to carry out the planned new drilling program and fast track completion of the DFS and all permitting inputs to allow development of the Batangas Gold Project.”
Red Mountain’s Batangas project gained notoriety for its regular discovery of super high grade zones, many of which are in excess of an ounce to the tonne gold.
The company recently unearthed a number of exciting at surface new gold lodes that it is planning to drill in due course.