Red Mountain gets further support from investor
PERTH (miningweekly.com) – Junior gold developer Red Mountain Mining has secured $220 000 in funding from strategic partner Bluebird Merchant Ventures to fast-track the completion of the definitive feasibility study (DFS) of the Batangas project, in the Philippines.
Red Mountain said on Friday that with the latest funding, Red Mountain had received a total of $500 000 from Bluebird.
The two companies in December last year finalised the two-stage funding, which would see the private investor provide $1-million to fund the Batangas DFS and permitting. The funding would be convertible into a 15% take in Red Mountain subsidiary RMMS, which holds the Batangas project.
The second stage of the funding would see the investor providing an additional $4.5-million in capital, for a further 35% stake in RMMS.
Upon the completion of the DFS and final permitting approvals, the Stage 2 funding would fund the detailed design and initial development.
The parties have agreed to extend the timing for the completion of the Stage 1 funding from July 9 to October 1, with the shortfall of funding in the meantime being loaned by Red Mountain to RMMS. The loan amount would be repaid, with interest, upon the receipt of Bluebird’s Stage 1 funding commitment.
Meanwhile, Red Mountain told shareholders that the company was also in advanced discussions, and had received initial terms from potential debt providers to fund the remaining capital requirements to establish on-site processing production at Batangas, subject to the completion of a positive DFS and final permitting approvals.
Red Mountain was working to complete the DFS by the first half of 2015, in parallel with final mine permitting.
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