Red Mountain Mining Secures $400K to Advance WA and NSW Gold Exploration

Funding Boost for Key Exploration Projects

Red Mountain Mining Limited (ASX: RMX) has successfully secured $400,000 in funding through a convertible note issuance, a move that underscores investor confidence in the company’s exploration strategy. The capital raise, supported by both new and existing professional investors, will underpin upcoming drilling programs at two of RMX’s flagship projects: the Kiabye Gold Project in Western Australia and the Armidale Antimony-Gold Project in New South Wales.

Targeting High-Priority Gold Anomalies at Kiabye

The funds will primarily support reverse circulation (RC) drilling at Kiabye, where recent ground magnetics surveys have delineated two strong northeast-striking magnetic linear anomalies at the Kiabye North area. These anomalies represent compelling targets for gold mineralisation. Additionally, drilling will focus on Kiabye South, which hosts a historic drill hole that ended with a notable gold intersection of 3.45 grams per tonne, highlighting the prospectivity of the area.

Antimony and Gold Exploration at Armidale

Meanwhile, at the Armidale Antimony-Gold Project, rock chip and soil sampling programs have been completed, with assay results expected by mid-May. Pending these results, a portion of the raised capital will be allocated to further exploration activities targeting both antimony and gold mineralisation. This dual focus reflects Red Mountain’s strategic approach to advancing critical minerals projects with diverse commodity exposure.

Convertible Notes Terms and Strategic Implications

The convertible notes have a face value of $1 each, totaling 400,000 notes, and carry a 10% per annum coupon payable in cash. Conversion terms allow noteholders to convert at the higher of a 25% discount to the company’s five-day volume weighted average price (VWAP) before conversion or a fixed price of $0.006 per share, subject to a ceiling of $0.01. Conversion can occur after a two-month period, with all conversions falling within the company’s existing placement capacity under ASX Listing Rule 7.1, thus avoiding immediate dilution through new share issuance.

Attached to the notes are 20 million unlisted options with a strike price of 1.1 cents and a three-year expiry, subject to shareholder approval. Xcel Capital Pty Ltd acted as lead manager for the capital raising, receiving a management fee and options as part of their remuneration.

Looking Ahead

Red Mountain Mining’s portfolio spans critical minerals projects across Australia, Canada, and the USA, including lithium and base metals alongside gold and antimony. This latest funding round positions the company to advance its exploration pipeline, particularly in Western Australia’s prospective gold terrain and New South Wales’ antimony-gold belt. Investors will be watching closely for the upcoming assay results from Armidale and the outcomes of the Kiabye drilling campaign, which could significantly enhance the company’s resource potential.