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Red Mountain Mining To Increase Cash Position

Red Mountain Mining (ASX: RMX) is preparing to make an announcement regarding its capital raising activities, with the ASX granting the company a trading halt.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 6th August 2013.

The company had yesterday started the first stage of a drilling program to test high grade epithermal gold targets at the Lobo prospect of its Batangas Gold Project in the Philippines.

This consists of five diamond drill holes, three at Japanese Tunnel and two at the Pica target.

Drilling will begin at the Japanese Tunnel target, where surface trenching had returned 5 metres at 10.43 grams per tonne gold, including 1 metre at 25.14g/t gold, and 2 metres at 18.12g/t gold, including 1 metre at 28.69g/t gold.

The first stage program will confirm the thickness and grade of previously drilled and/or sampled high grade gold mineralisation, allowing refinement of the Exploration Target and planning of further drilling to define potential mineral resources.

The second stage will involve extension and infill drilling at the two targets at sufficient density to define mineral resources.

Red Mountain had $1 million in cash and cash equivalents as of 30 June 2013.

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