Drilling at Batangas in the Philippines

Red Mountain to bank $2.6m

ASX listed Philippines high grade gold explorer Red Mountain Mining look set to bank $2.65m in the next few weeks after a strong showing in their recent rights issue.

The rights issue, which was fully underwritten, will raise $1.05m for the company.

Sixty five percent of shares offered in the right issue were taken up by shareholders and the remainder will now be placed by underwriters Pac Partners.

In addition to the right issue, Red Mountain’s strategic partner in the company’s Batangas gold project, Bluebird Merchant Ventures will pay Red Mountain $1.6m when they list on the London stock exchange later this month.

The $1.6m is for outstanding monies owed to Red Mountain as part of a farm in agreement at the Batangas Gold project in the Philippines.

Red Mountain Managing Director Jon Dugdale said: “We are very pleased with the strong support of our shareholders for this Rights Issue.

“The Rights Issue funding of $1.05 million, along with the approximately $1.6 million in funds expected from our strategic partner, Bluebird Merchant Ventures, by the end of March, really sets the company up to deliver on its key milestones at the Batangas Gold Project, including completion of the DFS and permitting for development of the project.

“The funding will also assist us to assess a couple of interesting Australian advanced gold projects that have been brought to our attention. The objective of getting involved with any locally based project would be to achieve gold production in the near to medium term.”

The rights issue was priced at $0.001 per share with one free attaching option for every two shares subscribed for exercisable at 1.5c each.

The company plans to use the funds to complete the DFS and permitting at Batangas and to look into other "interesting" projects in Australia that have recently been brought to their attention. 

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