Bluebird listing “releases the shackles” on RMX project
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Red Mountain Mining (ASX:RMX) says the listing of Bluebird Merchant Ventures on the London Stock Exchange “releases the shackles” on its flagship Batangas gold project in the Philippines.
It told its shareholders today that Bluebird was on course for a listing on the LSE later today Australian time after it published an approved prospectus for a minimum 1.675 million pound ($A3.12 million) raising.
The listing of Bluebird is a vital cog in getting the Batangas gold project up and running, as the funds from the raising will go towards a definitive feasibility study for the project.
After the raising, Bluebird will pay RMX $1.6 million as part of a previous loan arrangement, while RMX has agreed to take a 4.7% stake in the newly listed LSE company.
Post payment of the loan, Bluebird is set to take a 25% stake in RMMS, the RMX subsidiary which holds the Batangas project.
This essentially values the project at $9 million, while RMX has a market cap of just over $2.6 million.
RMX managing director Jon Dugdale admitted that the listing process has been a while in the making, but now it was here, removed an overhang from the project.
“This releases the shackles on the project, and will allow the JV to get on with completing the DFS; a geotechnical and resource target drilling program, and permitting of the Batangas Gold Project development,” he told shareholders.
About Batangas
The funding is going towards a definitive feasibility study and drilling at the Batangas Gold Project in the Philippines.
Total mineral resources at Batangas sit at 2.97 million tonnes @ 2.4 grams per tonne gold for 227,000 on an indicated basis, and 3.22MT @ 2.1g/t for 218,000oz on an inferred basis.
RMX’s project in the Philippines
The Lobo area features 82,000 oz on an indicated and inferred basis – including the South West Breccia mine, which will be the first start-up mine at the project.
Free cash flow from production of the first 100,000oz is expected to be $45 million.
Capex at this stage is expected to be $15 million, a figure set out in a scoping study and feasibility update, but a definitive feasibility study would add more certainty around the numbers.
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