Red Mountain Mining raises $600,000 for Philippines drilling

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Red Mountain Mining (ASX:RMX) has raised $600,000 through its share purchase plan priced at $0.0025, a good result in the current market.

This represents a 20% discount to the 5-day volume weighted average price of its shares prior to the issue date. RMX last traded at $0.003.

The company received subscriptions for $281,500 worth of shares from shareholders with the remaining $318,500 subscribed by underwriter PAC Partners Limited.

Proceeds will be used in part to drill under exceptional trenching results at the South West Breccia Main Lode extension in the Philippines.

These included 7 metres at 20.5g/t gold; 7 metres at 11.5g/t gold, 1.5 metres at 25.4 g/t gold and 5 metres at 8.83g/t gold.

Funds will also be used to test the recently identified Tamarind target for a possible repeat of the SWB high-grade gold resource at the Lobo prospect of its Batangas Gold Project.

Jon Dugdale, managing director, commented:

“This is a good outcome for the company, given the current challenging market conditions.

“We are really pleased with the support of both our shareholders and the Underwriter, and we are now well placed to test a couple of very exciting drill targets.

“The drilling will allow us to potentially upgrade the resource prior to completion of the Definitive Feasibility Study on the Batangas Gold Project.”

Recent Activity

Red Mountain recently discovered the highest surface grade rock chips to date grading up to 151.6 grams per tonne gold from extensions of the SWB.

Trenching has also defined a 40 metre strike length extension that is open to the southwest towards Japanese Tunnel.

The Batangas Gold Project currently has a global JORC 2012 Indicated and Inferred Resource of 6.19 million tonnes at 2.2g/t, or 444,000 ounces of contained gold.

 

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