Red Mountain Mining secures up to $300,000 in funding

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Red Mountain Mining (ASX:RMX) has secured a Convertible Security Funding Agreement (CSFA) for up to A$300,000.

The funding is by way of convertible securities with the Australian Special Opportunity Fund, LP, managed by The Lind Partners, LLC, a New York based institutional investor.

The CSFA will allow Red Mountain to drawdown up to A$300,000, in a maximum of three monthly tranches, and to issue Convertible Securities, to be repaid at a face value of 1.1667 times the amount drawn with no interest if the face value is paid within a 3 months (90 days) term of each drawdown.

Red Mountain added that it intends to pay the face value of any Convertible Securities issued within the Term from part proceeds expected to be received from Bluebird Merchant Ventures Limited.

Funds would be received on its Admission to the LSE and associated capital raising, which will also enable Red Mountain Mining Singapore (RMMS) to repay project loans to RMX totalling up to US$1.2 million.

Jon Dugdale, Red Mountain managing director, commented:

“The CSFA will provide interim funding to continue the Batangas Gold Project program, and working capital, in advance of our strategic funding partner, Bluebird, listing on the LSE.

“As previously announced, following Bluebird’s anticipated January 2016 listing, and their related capital raising, BMV will provide agreed funding for the Batangas Gold Project, which will enable us to complete the planned drilling program and finalise the Definitive Feasibility Study, as well as enable the repayment by RMMS of up to US$1.2 million with interest and costs in project loans to RMX.”

 

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