Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Red Mountain Mining To Close Share Purchase Plan Early Due To Strong Demand

Red Mountain Mining (ASX: RMX) will today close its Share Purchase Plan to raise up to $700,000 due to significant demand from shareholders.

Applications received from eligible shareholders prior to 5.00pm (NYSE:WST) today will be accepted. It was originally set to close on 7 February. The plan was priced at $0.017. RMX last traded at $0.024.

The SPP, which is partially and conditionally underwritten to $250,000, will be used to help fund drilling at the Lobo Prospect of its Batangas project in the Philippines.

Trenching has returned numerous high grade assays of 4.9 metres at 24.9 grams per tonne gold including 0.5 metres at 136.9g/t gold; 1.75 metres at 41g/t gold including 0.5 metres at 125.5 g/t gold; and 1.8 metres at 55.9g/t gold including 0.9 metres at 110.9g/t gold.

Drilling will determine what is under the high grade surface discoveries.

Four diamond core holes will test under Trench 7 with drilling continuing along strike to define potential mineral resources.

Drilling is also planned to test under Trench 13 results that include 2.6 metres at 28.6g/t gold and other areas that are the subject of ongoing trenching.

Red Mountain's SPP follows a $1.02 million placement to professional and sophisticated investors.

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.