- Red Mountain Mining (RMX) has raised $800,000 via a placement to professional and sophisticated investors
- The company first announced its plans to tap investors for more cash earlier this week when it locked up its shares in a trading halt
- Since then RMX has recieved firm commitments to raise additional capital, via the issue of over 114 million shares worth 0.7 cents each
- Additionally, the company wants to issue one attaching option for every two shares issued under the placement
- The option would have an exercise price of 0.8 cents and an expiry date of July 14, 2021
- Red Mountain said almost all of the $800,000 raised will be spent on work program across Mt Maitland, Koonenberry and Mukabe-Kasari projects
- Shares in RMX have begun trading again, worth 0.8 cents each
Exploration company Red Mountain Mining (RMX) has raised $800,000 via a placement to professional and sophisticated investors.
Red Mountain first announced it was seeking additional funds earlier this week, when it locked up its shares in a trading halt pending the annoucement of the capital raise.
Placement terms
The trading halt has now lifted, with the compay revealing it had recieved firm commitments from investors to raise additional capital via the issue of over 114 million shares.
The placement shares are worth 0.7 cents each, which is a 25 per cent discount to the 15-day volume weighted average price of RMX shares.
Red Mountain has also announced it plans to offer participating investors one attaching option for every two shares issued under the placement.
The options would have an exercise price of 0.8 cents and an expiry date of July 14, 2021.
In addition to this, the company will seek to issue up to 30 million director and advisor options, subject to shareholder approval.
These options would be exercisable at 1.1 cents each and expire two years from the date of issue.
The placement by Red Mountain Mining was managed by Xcel Capital and the new shares under the placement are expected to be issued on or around October 2.
Work program
Almost all of the $800,000 raised by RMX will be spent on work programs across a number of its international and Australian projects.
In particular, the company said the money will go towards supporting a planned initial drilling program at its newly acquired Mt Maitland Gold Project in WA.
Funds will also be directed towards Red Mountain’s Koonenberry Gold Project in NSW and its Mukabi-Kasiri Cobalt Copper Project in the Democratic Republic of Congo.
Since coming out of a trading halt this morning, shares in Red Mountain Mining are trading steady for 0.8 cents each at 12:57 pm AEST.