RMX - Red Mountain Mining

[System]

Red Mountain Mining Limited (RMX) is seeking to establish itself as an operating gold producer in China through strategic joint ventures with Chinese partners. Its primary activity is exploration within China however, beyond this realm, it is also focused on on acquiring advanced gold projects and underperforming mining operations in China which can be upgraded using modern Australian mining methods or converted into producing assets through advanced exploration techniques and modern mine designs. It has two projects; Zhongqu and Diebu.

http://www.redmm.com.au

 

[springhill]

MC - $5m
SP - 7.5c
Shares - 64m
Options - NQ
Cash - $4.4m

Drilling Commences on Potential High-Grade Gold “Feeders” at Batangas Project
Red Mountain announce that, funded by a loan facility from RMX, Mindoro Resources commenced diamond core drilling on Sunday 5 August, targeting potential high-grade gold feeder zones at Archangel within the Batangas Project.
It is expected that the initial program will include at least five diamond core drill holes, each targeting a separate interpreted feeder structure within the Kay Tanda resource area of the Archangel gold project. The results and information from this program will assist planning for systematic resource definition and resource expansion drilling scheduled to commence in October.
The first hole will target the central part of the Kay Tanda resource area, within the Archangel project where previous high-grade intersections have been interpreted as an up-flow or “feeder” zone.

June Quarter
• Non-binding term sheet signed for the proposed acquisition of significant gold resources and copper-gold assets (“Assets”) in the Philippines from Mindoro Resources Ltd (Mindoro).
• Binding Share Sale Agreement in relation to the proposed acquisition of the Mindoro Assets signed post quarter end.
MINDORO ACQUSITION
• Proposed acquisition of significant gold resources and copper gold assets in the Philippines containing an Indicated Resource of 10,150,000 tonnes @ 1.2g/t for 393,000 contained ounces of gold and 1,427,800 ounces of silver and an Inferred Resource of 3,800,000 tonnes @ 0.88g/t for 108,000 contained ounces of gold and 210,000 ounces of silver, with significant further exploration potential (“Acquisition”).
• High grade gold intercepts below and not within the JORC resources include 61m @ 5.1g/t, 64m@ 3.5 g/t, and 26m @ 4.03g/t which give walk up drill targets to expand the known resource.
• Well established and recognised social and environmental “license to operate” within the Philippines.
• Red Mountain Mining acquiring a proven and experienced exploration team located in Philippines.
• Transaction strongly in line with Red Mountain Mining’s strategy and provides a unique opportunity to apply modern Australian mining techniques to the acquired gold projects.
• Post quarter end the company had completed comprehensive due diligence and had signed the binding Share Sale Agreement.
Acquisition price
Consideration for the proposed acquisition of the Mindoro Assets will comprise:
• 100,000,000 fully paid ordinary shares in the capital of Red Mountain Mining escrowed for 12 months from completion; and
• 50,000,000 performance shares in the capital of Red Mountain Mining that convert into Shares if, within 12 months of completion of the Acquisition, both (a) the gold resource across the Assets increase to 600,000 ounces at a JORC Indicated level; and (b) a scoping study is completed on the Assets that confirms that the development of a mine is economically viable, where the scoping study must have a minimum of 50% conversion of the 600,000 ounces Indicated JORC Resource to mineable reserves. These shares will be voluntarily escrowed for up to 12 months once vested.

Mindoro intends to make an in specie distribution of the initial 100,000,000 Shares on a pro rata basis after 12 months of completion. The 50,000,000 Performance Shares (if milestones are achieved) will be distributed in specie to Mindoro shareholders up to 24 months after completion.
Following completion of the Acquisition, current Red Mountain Mining shareholders will retain an approximate 35% to 44% interest in the expanded group (depending on the final number of shares issued).


ZHONGQU PROJECT, GANSU
During the quarter, the Company sought to renegotiate the financial terms and extend the option exercise timing of the Zhongqu Project Framework Agreement, whereby Red Mountain Mining had an option to acquire a 51% equity interest in the operating gold mine for US$45 million.
Whilst there was potential resource upside, Red Mountain Mining considered there to be insufficient resource potential to justify the original purchase price under the Framework Agreement and was unable to reach satisfactory agreement on an extension to the Framework Agreement to allow further negotiations.
Consequently, as announced on 24 April 2012, the Company withdrew from the Framework Agreement.

 

[stormboy]

How about this little mover, up 400% in the new year with some more announcements to come.

 

[pixel]

How about this little mover, up 400% in the new year with some more announcements to come.

Have you looked at the options RMXO?
Expiry? Exercise price?? Could there be a causal connection???

 

[stormboy]

Have you looked at the options RMXO?
Expiry? Exercise price?? Could there be a causal connection???

Option were by June 30 from memory at about 0.006-0.009.

A lot of people bailing on this stock late yesterday and today, but worthy of some research with good announcements to come. I'm in for the mid term. Price hovering around 0.024 today. Finding good resources but dwindling away the cash.

 

[Tsubodai]

Hey Stormboy, just a coincidence, I am not stalking you.

The last 2 days have been good for RMX up 34%. As I have said, I am new to this and don't understand the whole mechanics but RMXO is up 59% in the last 2 days and 220% for the month. Their recent fund raise to further investigate their finds seems to have created interest and confidence.

Got in at 2.6 (rmx) last week and closed today at 3.1. Could all go pear yet but will hold for the long term.
Crazy stuff because I got into this gig intending to intraday trade only. Sorry I can't provide charts or TA but that's not what I do. Wish I could but working on it.

 

[burglar]

Hey Stormboy, just a coincidence, I am not stalking you.

The last 2 days have been good for RMX up 34%. As I have said, I am new to this and don't understand the whole mechanics but RMXO is up 59% in the last 2 days and 220% for the month. Their recent fund raise to further investigate their finds seems to have created interest and confidence.

Got in at 2.6 (rmx) last week and closed today at 3.1. Could all go pear yet but will hold for the long term.
Crazy stuff because I got into this gig intending to intraday trade only. Sorry I can't provide charts or TA but that's not what I do. Wish I could but working on it.

Hi Tsubodai,

Your instinct is good.

Intraday trade doesn't mean going broke.

It means choosing a shorter time-frame Wherever and Whenever it is in your interests.
You should run your winners, cut your losers and hopefully make money.

Like you, I am working on charting skills (not my top priority).

If you have a reasonable number of shares
and if you are scared,
you can sell some and keep some!

It is safer but it won't make you wealthy!

 

[JimBob]

It was only a few weeks ago that RMX was very much unloved at 0.003 or 0.004 and RMXO sitting with a stack for sale at 0.001. It has been a good rise on strong volume in recent days but the market cap is still reasonable, or still a bit low, for the stage they are at. Drilling is underway underneath the high grade trenches so im wondering if this is an early sign that drill results are good.

 

[stormboy]

I got in at 0.007, 0.019, 0.023, 0.028 & topped up again today. Really like this one & hopefully the decide to produce. I emailed the Managing Director today who responded promptly & seems very excited.

Everything announced is positive but like everything could go pear shaped quickly. Hero to Zero!

All the best, DYOR of course.

 

[Tsubodai]

So, RMX oversubscribed and the board decide to issue $2.4M worth of shares in stead of the original $700K @ 0.017. I was lucky to be at my desk when the announcement was made and got out at 0.031 before the SP plunged to 0.024 in little over 30min. Not sure were it will end before the issue is complete but wouldn't be surprised if it goes below 0.02. I will certainly be jumping back in when it starts its climb again. My original entry was at 0.028 so I am happy I made a bit and avoided the blood bath that I could not afford financially, but still disappointed at the same time.

 

[Tsubodai]

All gone quiet since the ann of additional shares. The release of the research report on the 14th has me wondering also. Does anyone have any thoughts?

 

[Tsubodai]

Trading Halt today with SS announcement to come. Lets hope that it is a good one. Would like to see the SP back above 3c again, but more Importantly that this is going to be a viable investment for the long term.
GLTA

 

[Rocky 01]

There is alot of anticipation built up here , even a small disappointment and the price will tank, should a 500k plus resource be delineated with all up costs 750 or below there will be a rerating

Rocky

 

[Tsubodai]

Long time between worthwhile announcements but finally some light shining through the tunnel.

http://www.asx.com.au/asxpdf/20140423/pdf/42p4hk5b66d90j.pdf

GLTA

 

[Tsubodai]

And a much better announcement today, with more to follow for sure.

HIGH GRADE DRILLING INTERSECTIONS FROM SOUTH WEST BRECCIA
Metallurgical hole intersects 6.7m @ 11.6g/t gold and 18m @ 6.85 g/t Au, incl. 6m @ 11.5 g/t Au
Drilling below current pit design intersects 6m @ 7.16 g/t Au including 3m @ 11.5 g/t Au
Deeper drillhole in progress to test down plunge projection of high-grade resource
Note: all intersections are downhole widths

 

[smpeth]

.004 SP today
i dearly hope this one gets off the ground

 

[pixel]

They joined the Lithium race. Announced today permission to drill for brine in Utah.
Chart looks promising, coming off support.
I have bought this morning; stop on close below 3c.
The 3.8 gap should be closed rather quickly. Next target then high 4's.

 

[PZ.]

Pretty confident holding this one + they are well funded after their recent CR.

 

[PZ.]

Glad I sold out prior to yesterday. The ole phrase "When you're in a hole stop digging!"

Spoiler

6 July 2017
Dale Allen
Australian Securities Exchange
Level 40, Central Park
152 St Georges Terrace
PERTH WA 6000
BY EMAIL: dale.allen@asx.com.au
Dear Dale
RMX ASX AWARE LETTER
We refer to your letter dated 5 July 2017 and respond to the questions raised in your letter as follows:
1. ASX understands that RMX was in possesion of material information, being the analyses of lithium levels for Drill Hole 1 prior to 4 July 2017. Is this correct?
No, this is incorrect. ALS (Fort Collins, Colorado), the primary laboratory conducting the analyses, had, prior to July 4, 2017, notified RMX that the results for drill hole 1 were available for collection by RMX.
However, RMX did not take possession of such information until 11.45pm (WST) Thursday 29 June, 2017.
By way of explanation, Red Valley was a greenfields exploration project that was seeking to define a large, Lithium brines deposit, amenable to conventional extraction techniques.
Following advice from our prospective and technical JV partner and Lithium specialist, Arizona based geologist, Mr William Feyerabend, the Board took the view that in order to properly evaluate the project as a whole, both results for drill hole 1 AND drill hole 2 needed to be considered.
Therefore, the Company instructed ALS to hold the results for drill hole 1 until the results of drill hole 2 were also to hand. In this way, a full and complete analysis of ground conditions at depth, stratigraphy, as well as Lithium content could be completed on the project as a whole and communicated to shareholders and the market generally. This decision was communicated to shareholdes in the Company’s announcement of 29 May, 2017.

2. If ASX’s understanding is not correct, please advise the time and circumstances in which RMX became aware of:
a. the completion of analyses of lithium levels for Drill Hole 1;
We were notified by e-mail at 10.53pm on Tuesday 23 May, 2017 that ALS had concluded its laboratory analysis of the brine samples collected from drill hole 1.
and
b. the level of lithium present in the Drill Hole 1 analyses was not at a quantity required for commercial operations?
As above, RMX received the results of drill hole 1 AND drill hole 2 analysis from ALS at 11.45pm on Thursday 29 June, 2017. By that point, the Company had been informed by ALS that the results would be forthcoming and, to that end, at 11.20pm, Mr King had
1
Red Mountain Mining Ltd ACN 119 568 106 Suite 5, 62 Ord Street, West Perth, Western Australia, 6005. PO Box 1928, West Perth, W.A. 6872
T: +61 (08) 9226 5668 F: +61 (08) 9486 8616 E: info@redmm.com.au W: www.redmm.com.au
already sent an e-mail to the Company Secretary requesting the Company be put into trading halt the following morning. Following receipt of the results, discussions took place between directors, Mr Jeremy King and Mr Lincoln Ho from around midnight that evening until about 1am. Having already requested a trading halt, it was agreed to further review results the next day and, importantly, to arrange a conference call with Mr Feyerabend.

3. If answering question 2, please advise if RMX considers the information, is information that a reasonable persion would expect to have a material effect on the price or value of its securities?
It is RMX’s view that possession of the results of laboratory analysis is information that a reasonable persion would expect to have a material effect on the price or value of its securities.
It is RMX’s view that possession of information that the results of analysis for drill hole 1 are available for collection is not information that a reasonable persion would expect to have a material effect on the price or value of its securities

4. Please advise the time and circumstances in which RMX became aware that the lithium levels present in Drill Hole 1 analyses were not of a quantity required for commercial operations? In answering this question, please comment specifically on the statement included in RMX’s announcement released to ASX on 29 May 2017: “Analyses for lithium levels are ready for hole 1 and remains secure at the respective labarotories.”
The Company received the results of both hole 1 and 2 on 11.45pm Thursday 29 June, 2017, as per above.
Consequently, as above, the Company had no choice but to immediately put its securities into trading halt while results were reviewed.
After a conference call with Mr Feyerabend on the morning of Monday 3 July 2017, Perth time, the Board concluded that the Lithium levels present in drill hole 1 and drill hole 2 analyses were not of a quantity required for commercial operations.

5. Please confirm that RMX is in compliace with the Listing Rules, in particular, Listing Rule 3.1.
Confirmed.

6. Please confirm that RMX’s responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy or otherwise by its board or an officer of RMX with delegated authority from the Board to respond to ASX on disclosure matters.
Confirmed.

Please do not hesitate to contact me if further information is required.
Yours sincerely
Shannon Coates
Company Secretary

 

[relationship1]

RMX is cashed up and ready to drill. Soil sampling occurred last weekend, ready for the upcoming drilling campaign. Watch this space!