THE BOURSE WHISPERER: Red Mountain Mining (ASX: RMX) has acquired a suite of advanced gold projects and copper gold tenements in the Philippines from Mindoro Resources (ASX: MDO).
The acquisition covers a 100 per cent direct and indirect interest in the Batangas gold project and 75 per cent direct and indirect interest in the Tapian San Francisco copper-gold assets.
The Batangas project, located south of Manila, contains JORC-compliant gold resources.
The 270 square kilometre project Manila contains an Indicated Resource of 10.1 million tonnes at 1.2 grams per tonne gold for 393,000 ounces of gold and 1,427,800 ounces of silver, and an Inferred Resource of 3.8 million tonnes at 0.88 grams per tonne gold for 108,000 ounces of gold and 210,000 ounces of silver.
Red Mountain described the Tapian San Francisco tenements in northern Mindanao as a major copper-gold porphyry prospect.
All up, three mineral production sharing agreements (MPSA’s), 10 granted exploration permits (EP’s) and six exploration permit applications (EPA’s) have been acquired by Red Mountain.
Source: Company announcement
Under settlement terms, Red Mountain has issued Mindoro with 100 million fully paid ordinary RMX shares, worth around $10 million with full voting rights, to be held in escrow for 12 months, together with 50 million Performance shares.
The Performance shares will convert to full voting shares upon Red Mountain upgrading the Indicated Resource at Batangas to 600,000 ounces of gold and completing a scoping study that demonstrates a viable gold mining project based on more than 50 per cent of the Indicated Resource converting to Mineral Reserve or equivalent within 12 months of completion of the transaction.
“We are delighted to have completed the acquisition and look forward to progressing our current aggressive drilling program targeting high-grade gold zones at the flagship Archangel resource within the Batangas project, as well as testing other targets such as at Lobo,” Red Mountain Mining executive chairman and acting CEO Neil Warburton said in the company’s announcement to the Australian Securities Exchange.
“The move is the first definitive signal to the market of Red Mountain’s corporate objective to acquire and develop under-explored or under-developed mineral assets, principally gold, across Asia, and particularly on those projects offering major economic interest in significant resources, high exploration upside and additional resource potential tenements.
“Our approach is three tiered – convert low grade/high tonnage gold resources into higher grade near surface mineable reserves, use existing infrastructure to fast track development, further explore our large land holdings and test multiple targets to establish long mine life.”