Recent funding moves have improved Red Mountain Mining’s financial profile as it seeks to advance the Batangas Gold Project in the Philippines.
A major new investor is seeking to support the company by way of a float on the London Stock Exchange while Red Mountain has also received a research and development (R&D) refund of Aus$337,543 for the financial year ended June 30, 2015.
UK-based Bluebird Merchant Ventures, which has recently moved to underpin Batangas development, confirms that it its targeting admission to the LSE by early December. Part of the proceeds from the admission will be used for Batangas’ initial funding, which has been increased to US$1.7 million under a new strategic partnership between Bluebird and ASX-listed Red Mountain.
Last month, Bluebird committed to a two-stage funding arrangement totalling up to US$5.5 million that will earn Bluebird up to 50.1% of Red Mountain Mining Singapore, the entity which controls Batangas.
The Bluebird agreement, along with the accompanying loan agreements, has been further varied to extend the timeframe for US$1 million of early funding, half of which has already been paid. The timing of a subsequent tranche of $350,000 in funding has also been extended.
The investment will support tests of new high-grade, near-surface gold targets at the project’s key Lobo prospect as well as geotechnical drilling.
Progress regarding Bluebird’s listing on the LSE follows immediately on Red Mountain’s receipt of Aus$337,543 as part of the Australian Government’s research and development refund program.
The claim was in relation to Australian-based research on metallurgical recovery of semi-refractory fine gold from epithermal gold ores at Batangas as well as research on the environmentally safe disposal and storage of thickened residues in a tropical environment.
The latest funding boosts have coincided with a period of substantial progress at Batangas, with Red Mountain now preparing for a drilling program at Lobo after rock chips in the area were found to grade as high as 151.6 grams/tonne gold.
The Bluebird investment funds Batangas through its permitting phase to the start of project development.
Red Mountain holds direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources totalling 6.19 million indicated and inferred tonnes at 2.2 grams/tonne gold for 444,000 ounces.