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  • Red Mountain Mining Varies Acquisition Terms Of Mindoro Gold, Copper Assets 0 comments
    Oct 18, 2013 12:09 AM

    Red Mountain Mining (ASX: RMX) has varied its share sale agreement regarding its acquisition of interests in the Batangas and Tapian San Francisco gold copper assets in the Philippines with Mindoro Resources.

    The company has recently intersected high grade gold from drilling at the Pica and Japanese Tunnel prospects of the Lobo Project at Batangas.

    Under the variation, Mindoro is prohibited from dealing with the 100 million RMX shares it was issued for the interests.

    This will last until the sooner of:

    - The execution of Novating Deeds of Assignment of contractual rights to interests over the Batangas as well as amendment of and completion of Mines and Geosciences Bureau registration of the Technical Service Agreement between RMX's wholly-owned subsidiary MRL Gold and 40% associate of MRL Gold, Egerton Gold Philippines; or
    - 30 April 2014.

    The variation also requires the joint venture rights to the Tapian San Francisco tenements that were originally required to be transferred to MRL Gold by 30 October 2012 to be transferred by 30 October 2013.

    In addition, the company has notified Mindoro that the milestones that would trigger conversion of the 50 million Performance Shares to full voting shares have not been met and will not be met by 30 October 2013, and, as prescribed under the SSA, the 50 million Performance Shares will therefore convert to a single RMX share only on 31 October 2013.

    Mindoro have indicated that they do not intend to immediately distribute or trade the 100 million shares upon release of the escrow.


    Red Mountain has recently intersected high grade gold at its Pica epithermal target with an assay of 2.5 metres at 9.2 grams per tonne gold, 28.4g/t silver and 8.6% Zinc from 97.9 metres.

    Further drilling along the 2 kilometre strike is expected to extend the mineralisation prior to defining a high-grade vein resource.

    Initial drilling at the Japanese Tunnel Prospect has also confirmed that gold-copper mineralisation remains open along strike and at depth.

    Drilling at Lobo is designed to define additional high grade, near surface, gold resources. The project is one of two key projects of the Batangas Projects located about 120 kilometres south of Manila.

    Current JORC Resources are 5.78 million tonnes at 2.2 grams per tonne gold and 3.3g/t silver for 408,000 ounces of gold and 606,000 ounces of silver, most of it at the Archangel Project.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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