Red Mountain Mining’s strategic financing partner, UK based Bluebird Merchant Ventures has announced its intention to list on the London Stock Exchange.
Red Mountain has an agreement with Bluebird that will see around AUD$1.2m flow to Red Mountain 3 days after Bluebird lists in return for 15% equity in the company’s Batangas Gold project in the Philippines.
The deal values Red Mountain at considerably higher levels that its current market cap.
The $1.2m that is expected to be paid in early December, is a reimbursement of recent funds already spent on the project by Red Mountain.
Bluebird will then pay approximately AUD$500 000 by the 29th of February next year to increase its stake in the project to 25% and those funds will be used to drill test the exciting new “Tamarind” target and to complete the final permitting and DFS that is currently underway.
The parties will then form a 25% - 75% contributing partnership.
Bluebird however, have two further opportunities to increase their project funding and move their share of the project from 25% to 50.1%.
They can choose to increase to 50.1% before September 30th 2016 by contributing a further US$1.7m before the permitting and DFS has been completed.
If however Bluebird choose to wait until after the DFS and permitting has been completed to move to 50.1%, they will need to contribute a further $3.8m in recognition of the increased value of the project at that stage. They have until December 2016 to take up this option.
Bluebird Merchant Ventures is a natural resource company with assets and investments in mineral resource projects in the Philippines. The Company currently trades high grade copper concentrates of Philippine origin.
