Red Mountain Mining’s strategic funding partner for the Batangas Gold Project in the Philippines, Bluebird Merchant Ventures Ltd, has published its approved prospectus for admission to the London Stock Exchange (LSE).
The prospectus includes the minimum placing of £1.675 million and an expected timetable for Bluebird’s imminent admission to trading on the LSE main market for listed securities.
From the proceeds Bluebird will complete stage one payments owed to Red Mountain’s subsidiary Red Mountain Mining Singapore Pte (RMMS) totalling US$1.7 million, of which US$500,000 has previously been paid.
From the US$1.2 million stage one payment, Red Mountain will be repaid all outstanding loans, including interest and costs, totalling approximately US$1.2 million, due within five days of Bluebird’s admission.
Red Mountain has subscribed for Bluebird shares under the placing to a total value of £500,000 and will become a shareholder of Bluebird, holding about 4.7% of the company’s issued capital following admission.
Net of the subscription, Red Mountain will receive about US$600,000 in cash, including repayment of the Bluebird loans with interest and costs and 25% joint venture contributions. This is in addition to the A$1.19 million raised through a recently completed placement and rights issue.
Upon completion of the stage one payments, Bluebird will earn a 25% interest in RMMS, which holds the Batangas assets, and a 75% Red Mountain and 25% Bluebird incorporated joint venture will be formed at RMMS level.
The new JV will then immediately focus on completing the definitive feasibility study; conducting a geotechnical and high-grade gold resource target drilling program; and completing the final permitting inputs to allow approval for the Batangas Gold Project development.
Red Mountain’s managing director Jon Dugdale said, “The success of Bluebird’s placing and admission to trading on the LSE will be a major milestone for both Red Mountain and Bluebird, and represents a strong vote of confidence in the planned, high grade Batangas Gold Project development. This releases the shackles on the project.”