Red Mountain Mining (ASX: RMX) is extending the $700,000 cap of its heavily oversubscribed Share Purchase Plan to $2,454,771, highlighting the strong support from its shareholders.
The company received valid applications for A$2,767,500 worth of shares from 328 shareholders and will apply a 11.3% pro rata scale back to all applications.
“We are very pleased with the high take-up in the SPP by our shareholders. This has provided the opportunity for Red Mountain to fund all planned exploration programs and finalise our development plans,” managing director Jon Dugdale said.
The Company will now issue 144,398,375 new shares. These are expected to be allotted on 12 February.
Funds from the SPP will be used to help fund drilling at the Lobo Prospect of its Batangas project in the Philippines.
Trenching has returned numerous high grade assays of 4.9 metres at 24.9 grams per tonne gold including 0.5 metres at 136.9g/t gold; 1.75 metres at 41g/t gold including 0.5 metres at 125.5 g/t gold; and 1.8 metres at 55.9g/t gold including 0.9 metres at 110.9g/t gold.
Drilling will determine what is under the high grade surface discoveries.
Four diamond core holes will test under Trench 7 with drilling continuing along strike to define potential mineral resources.
Drilling is also planned to test under Trench 13 results that include 2.6 metres at 28.6g/t gold and other areas that are the subject of ongoing trenching.
Red Mountain’s SPP follows a $1.02 million placement to professional and sophisticated investors.
MD Jon Dugdale presenting at "Stars in 2014" Investor Forum in Sydney - REGISTER HERE
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