Batangas on the “fast track” after Bluebird cash injection
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Red Mountain Mining (ASX:RMX) says work at the Batangas gold project in the Philippines will be put on “fast track” after it finalised a long-awaited deal with Bluebird Merchant Ventures.
Now that Bluebird has finished its listing process on the London exchange, it has paid RMX a total of $US1.7 million ($A2.35 million) in exchange for 25% of the project – effectively valuing the project at about $A9.3 million.
In addition, Bluebird has paid interest and costs accrued by the Batangas JV totalling roughly $A218,000.
The plan from here will be to complete a pre-feasibility study on the project, which is expected to take into account lower energy input costs due to the lower cost of diesel.
Then the JV will start drilling at the project to inform a definitive feasibility study, and then gain approvals from the Philippine government for permitting inputs.
RMX managing director Jon Dugdale told investors that now the Bluebird cash had been receieved, it was in a position to “fast track” the project.
“Now the Batangas JV is operational, and funded, we can bring together all the work over the past 12 to 18 months to fast track completion of the development studies and permitting,” he said.
About the Batangas gold project
The funding is going towards a definitive feasibility study and drilling at the Batangas Gold Project in the Philippines.
Total mineral resources at Batangas sit at 2.97 million tonnes @ 2.4 grams per tonne gold for 227,000 on an indicated basis, and 3.22MT @ 2.1g/t for 218,000oz on an inferred basis.
RMX’s project in the Philippines
The Lobo area features 82,000 oz on an indicated and inferred basis – including the South West Breccia mine, which will be the first start-up mine at the project.
Free cash flow from production of the first 100,000oz is expected to be $45 million.
Capex at this stage is expected to be $15 million, a figure set out in a scoping study and feasibility update, but a definitive feasibility study would add more certainty around the numbers.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
