ASX ANNOUNCEMENT
RED MOUNTAIN MINING LTD
ASX : RMX
Company Directors Jeremy King Lincoln Ho
Robert Parton Company Secretary Shannon Coates
RED MOUNTAIN MINING LTD
6 September 2017COMPANY UPDATE
- RMX to proceed with earn-in to acquire up to 90% of Mokabe-Kasari Cobalt Copper project located in world famous DRC Copper belt
- Due diligence finalised, including site visit by CSA Global - grades up to 0.5% Cobalt
- Phase 1 exploration to commence immediately and to target high-grade Cobalt zones
- Improved Earn-in terms completed
- Placement to fund work programme together with assessment of additional opportunities completed
Red Mountain Mining Limited (the Company, Red Mountain or RMX) is pleased to advise that it will proceed with phase 1 of exploration to earn into the Mokabe-Kasari Cobalt-Copper project in the DRC.
Director Jeremy King commented:
"The final stages of due diligence on Mokabe-Kasari have taken longer than we would have liked. Nevertheless, this delay has provided the opportunity to re-negotiate the economics of our staged deal and we view this as a good outcome for shareholders. We will now move to immediately implement a work programme with the focus on the encouraging Cobalt grades that have been identified within the tenure package."
Update on Mokabe-Kasari ProjectThe Mokabe-Kasari Cobalt Copper Project is located in the Congolese part of the prolific Central African Copper belt. It comprises artisanal licenses covering approximately 116km2. For further detail on the region and nearby Cobalt and copper mines and previous sample work, see the Company's ASX announcements dated 21 March 2017 and 22 May 2017.
Recently, RMX's technical advisor, CSA Global Pty Ltd, conducted a short reconnaissance site visit to the Project and carried out validation ground-work across the tenure package to ensure there existed the opportunity for sufficient scale, to assess geologic prospectivity as well as to scope future exploration work. Additional samples were also taken which included Cobalt grades of up to 0.5%. See Figure 1 for the full table of such sampling results. The Board has been encouraged by the final due diligence results, and is looking forward to commencing phase 1 exploration.
Improved Commercial TermsFollowing ongoing negotiations with the introducing party, CoCu Pty Ltd, commercial terms have been revised and RMX may earn up to 90% of the Mokabe Kasari Cobalt-Copper Project via:
The issue of 14 million shares in RMX (7.5 million of which will be subject to 12 months escrow) These shares will be issued pursuant to the Company's existing placement capacity pursuant to Listing Rule 7.1;
Payment of A$70,000 on commencement of phase 1 exploration;
Payment of A$75,000 90 days after phase 1 exploration commencement provided that RMX notifies CoCu that it wishes to continue with the Project; and
Payment of US$100,000 on issue of Mining Licence (or equivalent) over Project area or portion thereof.
RMX further advises that it has received firm commitments from professional and sophisticated investors to raise $735,000 (before costs) via the issue of 66,818,182 new fully paid ordinary shares at an issue price of
$0.011 (1.1 cent) per share (Placement), which represents a 25% discount to the 15 day trading VWAP to 1 September 2017. The Placement will be issued pursuant to the Company's existing placement capacity, with 23,898,101 shares to be issued pursuant to Listing Rule 7.1 and 42,920,081 shares to be issued pursuant to Listing Rule 7.1A.
Xcel Capital will act as Lead Manager to the Placement.
The Company shall utilise funds raised towards earn-in exploration activities at the Mokabe-Kasari Cobalt- Copper Project, ongoing identification and due diligence on additional asset and project opportunities, general working capital and cost of the offer.
New Asset OpportunitiesFollowing successful completion of the capital raising RMX is well funded to complete phase 1 of exploration on Mokabe-Kasari as well as potentially acquiring complementary assets. The Board continues to regularly review new opportunities in the new energy metals, base metals and gold sector.
For and on behalf of the Board.
Shannon Coates, Company Secretary-Ends-
Competent Person StatementInformation in this report that relates to Exploration results has been compiled from historic data by Mr. Simon Dorling, who is a member of the Australian Institute of Geoscientists. Mr. Dorling is a consultant to RMX, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Dorling consents to the inclusion of the data in the form and context in which it appears.
Figure 1: Sample Results from CSA Global site visit:
Sample_No | East | North | RL | Cu% | Co% | Sample Type |
S099011 | 416386 | 8898468 | 1222 | 0.6 | vertical channel sample, 0.8m | |
S099012 | 416385 | 8898461 | 1215 | 0.0 | vertical channel sample, 1.3m | |
S099013 | 421402 | 8898199 | 1141 | 0.0 | 0.5 | gravel; sample from 7-9m |
S099014 | 421549 | 8898296 | 1137 | 0.0 | 0.3 | black coated transported material, 1-2m |
S099015 | 421446 | 8898296 | 1137 | gravel; rock pebbles with black staining | ||
S099016 | 421830 | 8906524 | 1307 | 0.0 | rock chip, | |
S099017 | 421811 | 8906663 | 1325 | 0.9 | vertical channel sample 0.4m | |
S099018 | 421933 | 8906617 | 1323 | 1.0 | vertical channel sample 0.4m | |
S099019 | 419981 | 8908218 | 1503 | rock chip, | ||
S099020 | 418976 | 8905286 | 1353 | 0.6 | rock chip, | |
S099021 | 416935 | 8902925 | 1325 | 2.0 | rock chip, lifted Co-plant up and found stratiform mineralisation | |
S099022 | 421977 | 8897850 | 1132 | 0.0 | ||
S099023 | 421446 | 8898296 | 1137 | 0.0 | 0.3 | duplicate-homogenised and split sample of S099014 |
S099024 | 416386 | 8898468 | 1222 | 0.7 | duplicate-homogenised and split sample of S099011 | |
S099025 | 416086 | 8896999 | 1175 | 0.7 | vertical Channel sample | |
S099026 | 416091 | 8896932 | 1174 | 0.1 | vertical Channel sample |
JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data(Criteria in this section apply to all succeeding sections.)
Criteria | JORC Code explanation | Commentary |
Sampling techniques |
|
|
Drilling techniques |
| Not applicable to this announcement as no drilling has occurred. |
Drill sample recovery |
| Not applicable to this announcement as no drilling has occurred. |
Red Mountain Mining Limited published this content on 06 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 September 2017 04:37:09 UTC.
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