- Red Mountain Mining (RMX) has presented shareholders with a new agreement for the proposed acquisition of the Mt Mansbridge heavy rare earths project
- The company’s initial proposal to purchase the project in WA’s Kimberly region was rejected by shareholders
- The new agreement stipulates consideration of 50 million shares and a $100,000 cash payment
- The new terms, along with a proposed share placement, will be put to shareholders at a meeting to be convened shortly
- Red Mountain has already received firm commitments for the $360,000 placement at an issue price of 1.2 cents per share
- RMX shares closed 12.5 per cent lower at 1.4 cents
Red Mountain Mining (RMX) has presented shareholders with a new agreement for the proposed acquisition of the Mt Mansbridge heavy rare earths project.
The company put the proposed acquisition of the project in WA’s Kimberly region to shareholders at a meeting in March.
The resolution to issue upfront consideration shares, however, was not passed with 77.6 per cent of votes cast against it.
Consideration set out in this agreement was 100 million shares and $100,000 cash as well as several milestone payments.
The new agreement stipulates consideration of 50 million shares and a $100,000 cash payment.
In today’s announcement, the company stated that the board believes the revised terms are considerably more favourable for shareholders.
“The Board is pleased with the dual result of significantly reduced share dilution and no milestone consideration for the acquisition of the Mt Mansbridge Rare Earths Project.”
“In addition, with COVID uncertainty significantly reduced access to the Kimberley region has improved significantly compared to March of this year when the asset was first presented to shareholders.”
Red Mountain will pay half of the cash consideration immediately and the remaining $50,000 if it receives shareholder approval for the share issue.
The new terms, along with a proposed $360,000 share placement, will be put to shareholders at a general meeting to be convened shortly.
Red Mountain has already received commitments for the placement, at an issue price of 1.2 cents per share, which will fund first pass exploration and drilling at the Mt Mansbridge project.
The company has already compiled a database of historical geochemistry, geophysics and drilling data and is reviewing and reprocessing data to delineate existing targets and generate new prospects.
Meanwhile, the company has secured a rig and is preparing to commence drilling at Mt Maitland project.
The reverse circulation drilling program will comprise 18 holes, for approximately 1,300 metres, and commence in the first week of November, slightly later than initially planned due to drilling running overtime at other projects.
RMX shares closed 12.5 per cent lower at 1.4 cents.