Red Mountain Mining (ASX:RMX) is continuing to improve its funding and financier profile with news that a major new investor is seeking to support the Batangas gold project in the Philippines via a float on the London Stock Exchange.
UK-based Bluebird Merchant Ventures, which has moved to underpin Batangas development in recent weeks, has confirmed that it its targeting admission to the LSE by early December.
Part of the proceeds from the admission will be used for Batangas’ initial funding, which has been increased to US$1.7 million under the new strategic partnership.
Last month, Bluebird committed to a two-stage funding arrangement totalling up to US$5.5 million that will earn Bluebird up to 50.1% of Red Mountain Mining Singapore, the entity which controls Batangas.
The Bluebird agreement, along with the accompanying loan agreements, has been further varied to extend the timeframe for US$ 1 million of early funding, half of which has already been paid.
The timing of a subsequent tranche of $350,000 in funding has also been extended.
The investment will support tests of new high-grade, near-surface gold targets at the project’s key Lobo prospect as well as geotechnical drilling.
Progress regarding Bluebird’s listing on the LSE follows immediately on Red Mountain’s receipt of A$337,543 as part of the Australian government’s research and development refund program for FY2015.
The claim was in relation to research on metallurgical recovery of semi-refractory fine gold from epithermal gold ores at Batangas as well as research on the environmentally safe disposal and storage of thickened residues in a tropical environment.
Analysis
Bluebird’s listing on the LSE will be a major milestone for Red Mountain, since the explorer will directly and immediately benefit from the investor’s exposure to this market.
The latest investments have coincided with a period of substantial progress at Batangas, with Red Mountain now preparing for a drilling program at Lobo after rock chips in the area were found to grade as high as 151.6 g/t gold.
The Bluebird investment funds Batangas through its permitting phase to the start of project development.
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