Red Mountain Mining's (ASX:RMX) strategic funding partner for the Batangas Gold Project in the Philippines, Bluebird Merchant Ventures, expects admission to trading on London Stock Exchange in the week of 14th March 2016.
This is a very important milestone for Red Mountain.
From the proceeds of the Initial Public Offering, Bluebird will complete the Stage 1 (A and B) payments totalling US$1.7 million, of which US$500,000 has already been paid.
This will earn Bluebird a 25% interest in RMX subsidiary Red Mountain Mining Singapore (RMMS), the holder of the Batangas Gold Project assets in the Philippines.
Red Mountain will then be repaid outstanding loans with interest and costs totalling circa US$1.2 million (~A$1.7 million).
Jon Dugdale, managing director for Red Mountain, commented:
"Our perseverance is soon to be rewarded, with our strategic partner's Admission and IPO on the LSE, which will allow outstanding loans to be repaid to RMX and for delivery of the key milestones towards Batangas Gold Project development and production."
Batangas currently hosts an Indicated and Inferred resource of 6.19 million tonnes at 2.2g/t gold for 444,000 ounces.
The Stage 1 payments settlement date, and the outstanding loans repayment date, have been extended to the earlier of 5 days after Listing or 31 March 2016.
Following Bluebird earning 25% of RMMS, a 25% Bluebird: 75% Red Mountain joint venture (new JV) will be formed at RMMS level, with each party funding its share of costs until either the Sole Funding Option (additional US$1.7 million) or the Stage 2 Funding Option (additional US$3.8 million) are executed by Bluebird.
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