CANBERRA: Red Mountain Mining Ltd. has received about P10 million ($220,000) in fresh funds from investors as it takes a step closer to developing a gold mine in Batangas by securing the approval of local government and community officials.
The Australian company said the amount came from Bluebird Merchant Ventures Ltd., and was part of a $1.5-million strategic financing partnership agreement.
The financing provided by Bluebird Merchant represented the first tranche of investments in Red Mountain. The second tranche, worth about $4.5 million, will be released once Red Mountain has come up with a definitive feasibility study (DFS), and secured the rest of the government permits needed to start work on the Lobo project south of Metro Manila.
“The additional Bluebird funding will allow us to continue the DFS and permitting processes at full pace,” Red Mountain managing director Jon Dugdale said in a statement. “We look to develop the Batangas gold project and [turn it into] a cashflow producer as soon as possible.”
Red Mountain aims to complete the DFS and secure all the permits by the third quarter this year, Dugdale added.It already secured endorsements for the project from the 10 concerned barangay councils, as well as the Lobo town council.
Last February, Red Mountain said higher prices of gold and lower prices of petroleum jacked up by half the expected cash flow from the near-surface gold project, now seen to exceed P2 billion over five years.
