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Red Mountain Mining Raises Funds For Accelerated Gold Push In The Philippines

Red Mountain Mining (ASX: RMX) has raised $550,000 which will be allocated to an accelerated gold push at the company's Batangas project, which is located south of Manila in the Philippines.

The new funds are from the recent pro rata renounceable rights issue, and will be allocated to test identified high-grade gold targets at the Lobo prospect.

Earlier in the month Red Mountain outlined its next stage of diamond drilling to test the high grade Pica and Japanese Tunnel gold discoveries at Lobo, with two holes planned to test the multiple east-dipping high-grade veins at Pica while three holes will test Japanese Tunnel.

Further drilling will then be planned along strike of the two prospects with the objectives of defining a new gold resource at Pica and new mineral resource at Japanese Tunnel.

Batangas is located 120 kilometres from Manila, and comprises two key gold prospects, Archangel and Lobo, which have combined JORC Resources of 5.78 million tonnes at 2.2g/t gold and 3.3g/t silver for 408,000 ounces of gold and 606,000 ounces of silver.

Breakdown of the $550,000 fundraising

The pro rata renounceable rights issue received subscriptions for 32.7 million shares to raise $327,008, with Patersons Securities providing subscriptions for a further 22.3 million shares to raise $222,992 - for a total of $550,000.

The issue was on the basis of three new shares for every two at an issue price of $0.01 per new share, and one free attaching "Short Dated" option with an exercise price of $0.015 and an expiry date of 30 June 2014.

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