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Red Mountain Mining Receives Local Government Endorsement For Batangas

Red Mountain Mining's (ASX:RMX) shares are expected to open higher after the company received local government endorsement for its Batangas Gold Project in the Philippines.

The company is also advancing the Definitive Feasibility Study (NYSE:DFS) towards completion, and new resource models are in progress.

The endorsement of the projects development and production plan is a critical step in the final mine permitting process.

Batangas has now been endorsed by all directly affected Local Government Councils, having already received the required endorsement of the ten Barangay (township) Councils earlier in the year.

Jon Dugdale, managing director, commented:

"The endorsement of all ten local Barungay Councils, and now the Lobo Municipal Council, is a firm vote of confidence that indicates how strongly the local community supports this project.

"With the support of the local government councils, we look forward to completing the final stages of permitting, then developing this exciting gold project."

Red Mountain is also in discussions with potential candidates for toll processing and/or ore sales of early mining targets at the project.

This could potentially provide early cashflow for the company prior to the establishment of processing facilities for the greater resource based project.

Next key permitting steps

Red Mountain will continue to consult with the next tiers of Government.

This includes the Batangas Provincial Council, while final technical review and mine permitting (Declaration of Mining Project Feasibility (DMPF)) is processed by the Central Government, Mines and Geosciences Bureau (MGB) prior to final approval by the Department of Environment and Natural Resources (OTCPK:DENR) in Manila.

The other key permitting element being progressed is approval of the Environmental Impact Statement (NYSEARCA:EIS) and grant of the Environmental Compliance Certificate (NYSE:ECC).

The final EIS community consultation briefings are to be held in Lobo this week, 28 and 29 May. Following this, the Central Government, Environmental Management Bureau (NYSEARCA:EMB) will complete its final review and approval of the EIS, before the ECC is granted by the DENR.

Analysis

Red Mountain Mining has now received local government endorsement for its Batangas Gold Project in the Philippines.

The endorsement of the development and production plan is a critical step in the final mine permitting process.

Upcoming key catalysts:

The company is also advancing the Definitive Feasibility Study towards completion Q3 2015, and new resource models are also in progress.

Red Mountain is also in discussions with potential candidates for toll processing and/or ore sales of early mining targets.

This could potentially provide early cashflow for the company prior to the establishment of processing facilities for the greater resource based project.

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