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Red Mountain Mining Completes 'Significantly Oversubscribed' Shortfall Placement

Red Mountain Mining (ASX: RMX) has now completed the shortfall for its pro rata $2.8 million renounceable rights issue offer announced in May.

Having been significantly oversubscribed, Red Mountain will allot the remaining shortfall in about a week, subject to the clearance of funds.

The shortfall comprises 221,033,039 new ordinary shares, 110,516,520 new short-dated options, exercisable at $0.015 on or before 30 June 2014, and 55,258,260 new long-dated options, exercisable at $0.03 on or before 30 June 2016, for a total consideration of $2.21 million (before costs).

Importantly for the company - the success of the capital raising fully-funds its current drilling program that is testing defined, high-grade, epithermal gold exploration targets on its Lobo prospect at Batangas Gold Project, located 120 kilometres south of Manila in the Philippines.

Jon Dugdale, managing director, commented: "We are very pleased that the company has been so well supported in this Rights Issue and we can now press forward with our more intensive drilling and development programs at the Batangas Gold Project."

Red Mountain commenced Stage 1 drilling at the start of August, with the initial exploration target to be tested is the Japanese Tunnel.

The first drill hole will test immediately under the high-grade surface trenching results of: 5 metres at 10.43g/t gold, including 1 metre at 25.14g/t gold and 2 metres at 18.12g/t gold, including 1 metre at 28.69g/t gold - which were announced earlier in the year.

Subsequent drilling is planned to test mapped extensions of the structure to the south west along strike where 20 metres to the southwest of the initial trench a broad 8 metre wide zone of intermittently exposed veining where previous outcrop sampling to: 5 metres at 6.63g/t gold, 9.9g/t silver, 11.47% copper indicates continued strong mineralization before the veined zone passes into an area of agglomerate, then under limestone cover.

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