Red Mountain Mining aims to raise A$1.19 million, through a placement and proposed fully-underwritten rights issue for the Batangas Gold Project in the Philippines.
Red Mountain hs received firm commitments for a $140,000 placement from professional and sophisticated investors, subject to available placement capacity.
In addition, subject to shareholder approval, for every two shares issued under the placement, the company will issue participants one new option, expiring March 31, 2018.
Red Mountain will also make a pro-rata, non-renounceable rights issue offer to raise a further $1.05 million. This will be on the basis of two new shares for every three shares held by eligible shareholders on the record date. In addition, 1 free attaching new option will be issued for every 2 new shares subscribed for, also expiring March 31, 2018.
PAC Partners Pty Ltd has been appointed as lead manager to the placement and underwriter of the rights issue. PAC has already confirmed to Red Mountain that it has received firm sub-underwriting commitments to underwrite the $1.05 million, with the intention to fully underwrite the rights issue on issue of the prospectus, subject to execution of a formal underwriting agreement.
Red Mountain managing director Jon Dugdale said, “We are delighted with the interest and demand for this placement and the rights issue underwriting, and we also look forward to offering shareholders the opportunity to participate in the future of the company by participating in the proposed rights issue.
“We have been working up a number of very interesting high grade targets at our Batangas Gold Project, which we intend to drill as soon as possible, subject to drilling consent from the Philippines authorities.
“The company has also been assessing a number of advanced gold project opportunities in Australia and we intend to progress the assessment of one of those, concurrently with the new drilling program.
“Importantly, we anticipate that in the near future our strategic funding partner, Bluebird Merchant Ventures Ltd, will list on the London Stock Exchange and provide the remainder of stage 1 funding of US$1.2 million and gain a 25% equity interest in the project before the new joint venture completes the feasibility study and permitting of the Batangas Gold Project development.”