Red Mountain Mining (ASX:RMX) has received firm commitments from professional and sophisticated investors to raise $340,000 through the issue of 56,402,833 shares priced at $0.006.
Adding to the previous placement, the company has now raised a total of $940,000, increasing its cash balance to about $1.4 million.
Proceeds will be used to continue sampling and selective drilling of the five priority targets on the Lobo Prospect of its Batangas Gold Project in the Philippines.
Red Mountain will grant one new option exercisable at $0.012 on or before 31 March 2016 for every share issued under the placement.
“We are delighted with the interest and demand for this placement, in difficult market conditions, from our loyal supporters,” managing director Jon Dugdale said.
“The funds will be used to continue exploration of the five new priority gold-silver targets within the 15 kilometre strike of epithermal structures on the Lobo Prospect and general working capital.”
Recently, a new silver-copper discovery was made at the Camo lode, which is part of the Batangas Project in the Philippines from drilling.
Highlighting the promise, drilling has extended the Camo lode which continues to grow, and has the potential to add significant resources.
The lode is at the Lobo Prospect, at the Batangas project.
A step out hole has intersected 5 metres of mineralised lode from 25 metres down hole, and highlighting the potential preliminary XRF drillcore results indicate up to 122g/t silver.
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