Red Mountain Mining (ASX:RMX) has received an additional US$220,000 (A$283,760) from strategic partner Bluebird Merchant Ventures Ltd to fast-track the Definitive Feasibility Study for its Batangas Gold Project in the Philippines.
Proceeds will also be used to progress all permitting inputs to allow final approval of the key environmental and mining permits.
The additional funding takes the total provided by Bluebird under the Strategic Financing Partnership Agreement to US$500,000.
This comprises part of the Stage 1 Commitment of US$1 million to fund completion of the DFS and permitting.
Batangas has already received local government endorsement for the project which is a critical step in the final mine permitting process.
It has now been endorsed by all directly affected Local Government Councils, having already received the required endorsement of the ten Barangay (township) Councils earlier in the year.
Adding interest, Red Mountain is also in discussions with potential candidates for toll processing and/or ore sales of early mining targets.
This could potentially provide early cashflow for the company prior to the establishment of processing facilities for the greater resource based project.
“We are very pleased with the ongoing project level funding support from our strategic partner,” managing director Jon Dugdale said.
“This funding will allow us to fast track the key milestones to initial development of the Batangas Gold Project, and potential early cash flow.”
Batangas 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 and open pit mining inventory of 174,000 tonnes at 6.8g/t gold.
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.