The importance of the drilling program is that it has the potential to be a repeat of the high-grade gold South West Breccia.
Following the drilling, a new resource will be calculated and used in the Definitive Feasibility Study.
To fund the program, Red Mountain has a share purchase plan underway, which could raise up to $1 million.
PAC Partners Pty Ltd is showing support, and has underwritten $600,000 of the offer.
The offer is currently forecast to close on Thursday 3rd September 2015.
The Batangas Gold Project located 120 kilometres south of Manila 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.
Share Purchase Plan details
The plan provides the opportunity for eligible Red Mountain shareholders to subscribe for up to $15,000 worth of new fully paid ordinary shares.
The issue price of the new shares will be determined at the issue date of the new shares under the plan.
It will be based on a 20% discount to the volume weighted average price of the company’s shares traded on the ASX during the 5 days immediately prior to the issue date.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.