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- Red Mountain Mining (RMX) has been granted an exploration licence by the WA Government, and will soon acquire the Mt Maitland gold project
- The binding term sheet will see the exploration company assume 100 per cent control of the project, located in the Murchinson Goldfield in WA
- Red Mountain will first spend $50,000 to conduct due diligence on the project, with the option to then pay $250,000 to acquire the whole site
- The due diligence will involve rock chip sampling and accumulating drill targets
- Red Mountain shares were placed in a trading halt today, but shares last traded at 0.6 cents each
Exploration company Red Mountain Mining (RMX) will acquire the Mt Maitland gold project, after being granted an exploration licence for the area by the WA Government.
The project is situated in the state’s Murchinson goldfields, and comprises 62 square kilometres of land, containing two mineralised shear zones over a 19 kilometres strike length.
Red Mountain believes it hosts a potentially significant gold mineralisation system. Previously, gold was first discovered at the site in 1898 and it had a historic production average of 19.3 grammes of gold per tonne of ore.
Under the biding term sheet announced today, Red Mountain will first spend $50,000 conducting due diligence of the project over a 21 day period.
This includes visiting the site and conducting rock chip sampling at several prospects, as well as reviewing historical data to accumulate a ranking of drill targets as part of a defined exploration strategy.
Once satisfied, Red Mountain will then pay $250,000 to the project’s vendor, geologist Simon Jones, and acquire 100 per cent of the site.
But the completion of the whole transaction is dependent on Ministerial approval, in accordance with the Mining Act WA.
Shares in Red Mountain Mining remain in a trading halt. The company requested a trading halt today, pending the acquisition announcement. Shares were last selling for 0.6 cents per share on July 3, 2020.
