PERTH (miningweekly.com) – ASX-listed Red Mountain Mining has secured $5.5-million from a private investor to fund its definitive feasibility study (DFS), final permitting and development of its Batangas gold project, in the Philippines.
The company reported on Tuesday that the two-stage funding 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.
The second stage funding was conditional upon the satisfactory completion of the DFS, the receipt of a compliance certificate from the government of the Philippines, and the definition of a proven or probable reserve to support the production of at least 100 000 oz of gold equivalent.
“This strategic investment partnership is a very important milestone for the company as it is anticipated to provide funding to complete the DFS and mine permitting for the low-cost Batangas gold project, then provide a further contribution to project development costs,” said Red Mountain MD Jon Dugdale.
A previously completed scoping study demonstrated the potential for a viable gold mining and processing project that could deliver about 90 000 oz of gold over a four-and-a-half-year mine life. However, a revised production schedule estimated that the project could deliver 100 000 oz of gold and 250 000 oz of silver over its 5.2-year mine life.
Red Mountain was now working to complete the DFS by the first half of 2015, in parallel with final mine permitting.