Red Mountain Mining (ASX: RMX) expects to be able to secure cheaper financing for its Philippines development projects after the country was upgraded to investment grade BB+ by ratings agency Standard and Poors.
This includes its Batangas Gold Project where recent drilling has defined a 1 kilometre gold corridor at the Lobo Prospect.
"We view the upgrade of the Philippines to investment grade, coupled with the intention of the Philippines government to fast track mining permit approvals under the Executive Order 79 policy, as very positive developments for a company such as Red Mountain, that aims to become a Philippines gold producer," managing director Jon Dugdale said.
Red Mountain is currently undertaking a $2.8 million pro rata renounceable Rights Issue to raise funds to continue drilling of high-grade gold exploration targets for potential resource upgrade and to complete a Scoping Study into a gold mine development at Batangas.
A quote has been received from Arccon Mining Services (Arccon), part of the Allmine Group (AZG), to complete a scoping study into project processing alternatives and associated capital and operating costs of mining about 550,000 tonnes of open pitable gold resource material per annum.
If the outcomes of the scoping study are sufficiently positive, the Company will aim to complete project permitting and a definitive feasibility study during 2014.
Batangas, located 120 kilometres south of Manila, comprises two key gold prospects, Archangel and Lobo, which have combined JORC Mineral Resources estimates of 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.
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