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Red Mountain Mining Ltd has green light for Batangas with Bluebird listing
Press release – http://www.proactiveinvestors.com.au/companies/news/68061/red-mountain-mining-ltd-has-green-light-for-batangas-with-bluebird-listing-68061.html
14 April 2016
Red Mountain Mining Ltd’s strategic funding partner for the Batangas Gold Project in the Philippines, Bluebird Merchant Ventures Ltd, has achieved Admission to trading on the London Stock Exchange main market.
Bluebird hit the boards at 8am on the 13th April 2016 (UK time).
The benefit for Red Mountain on the Bluebird listing is that it will receive cash, to add to the recently raised A$1.19 million (before costs) from a placement and rights issue.
With the Bluebird admission to the LSE, US$1.2 million (A$1.6 million) in loans will be re-paid to Red Mountain within 5 days.
Red Mountain has also subscribed for of GBP 500,000 (US$700,000) in shares in Bluebird, and will hold circa 4.7% of Bluebird’s issued capital.
Therefore net of the subscription in Bluebird, Red Mountain will receive US$0.6 million (A$0.8 million) in cash, including repayment of the Bluebird Loans with interest and costs and 25% joint venture contributions.
Jon Dugdale, managing director for Red Mountain, commented:
“Now that Bluebird’s Admission to the LSE and their IPO has been achieved, we have the green light to deliver the key milestones we have been working towards at the high-grade Batangas Gold Project in the Philippines.
“We’ve been chafing at the bit to complete the Feasibility Study, drill test our high grade gold targets and complete the development permitting inputs, so it’s an exciting few months coming up.”
The Stage 1 funding payments by Bluebird for 25% of Red Mountain Mining Singapore Pte (RMMS) total US$1.7 million.
RMMS is the holder of the Batangas Gold Project assets.
This represents a US$6.8 million (A$9 million) valuation for 100% of Batangas.
With Red Mountain holding 75%, and having an enterprise value circa $3 million, the company provides an intriguing investment opportunity in the gold sector.