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Red Mountain Mining Gains New Substantial Shareholder

Red Mountain Mining (ASX: RMX) has received a notice of initial substantial shareholding from E.Pishas & Sons P/L, which holds 64 million shares or about 9.28% in the company.

The company had on 3 April 2014 acquired 30 million shares for an unspecified cash amount.

This added to the 34 million shares it had previously acquired for a total of $551,544.35, or an average price of $0.016 per share.

Batangas Gold Project

Red Mountain had earlier this month moved one step closer towards production and cash flow after submitting its Batangas gold mining project feasibility application to the Philippines Government for approval.

An expanded 10 year mining operation is sought, which will initially focus on mining and processing inventory from the South West Breccia mineral resource, on the Lobo Mineral Production Sharing Agreement.

Following this, mining and transporting to Lobo, and processing of the Kay Tanda West mineral inventory would take place.

It is anticipated that additional resources from Kay Tanda, then lower grade stockpiles will be mined, transported and processed out to year 10 of the operation.

The Scoping Study for Batangas has estimated a low $16.7 million pre-production capital cost and attractive IRR of 70% and projected life of mine revenue of A$134 million.

The revenue is estimated over the initial 4.5 year mine life on production of 90,000 ounces of gold while net cash flow is estimated at $40 million. Payback is expected in 1.2 years.

Average all-in costs (C3) are A$1050 per ounce while C1 cash costs are about A$769 per ounce.

The Scoping Study is entirely based on a simple open pit mining and carbon in leach (NASDAQ:CIL) processing of existing, high grade resources, of which 90% of the resources to be mined are in the Indicated category.

The processing plant is intended to be located at Lobo, close to the very high grade South West Breccia resource and local infrastructure, about 2 kilometres east of Lobo township.

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