Red Mountain Mining Targets Capital Raise of Up to AU$1.16 Million through Share Purchase Plan

Highlights:

• Capital Raise Opportunity: Red Mountain Mining Ltd (ASX: RMX) launches a Share Purchase Plan to raise up to $1.16 million, with shares priced at a 20% discount to the recent VWAP.
• Strategic Use of Funds: Proceeds will drive exploration at the Fry Lake and Kiabye Gold Projects and support working capital, enhancing the company’s growth potential.
• Key Dates for Shareholders: Eligible shareholders can participate from November 6 to November 20, 2024, with results and share issuance slated for November 27, 2024.

Capital Raise Details

Red Mountain Mining Ltd (ASX: RMX) has announced a strategic capital raise, aiming to secure up to $1.16 million through a Share Purchase Plan (SPP), providing eligible shareholders the chance to acquire additional shares in the company at a favorable rate. The new shares are priced at $0.01 each, representing a 20% discount to the volume-weighted average price (VWAP) over the last five trading days prior to the announcement, offering shareholders a cost-effective opportunity to strengthen their stake.

Shareholder Participation Opportunities

Eligible shareholders, registered by 5:00 PM AWST on October 30, 2024, can apply for shares up to a maximum value of $30,000 without incurring additional transaction costs. Red Mountain Mining reserves the right to adjust the offer based on demand, potentially accepting oversubscriptions or closing the offer earlier than planned. At the time of writing, these shares are set to provide participants with equal standing alongside current shares.

Fund Allocation and Project Acceleration

The funds raised will fuel key projects, particularly accelerating exploration at the Fry Lake and Kiabye Gold Projects, while also enhancing Red Mountain Mining’s working capital. This capital raise underscores the company’s commitment to expanding its gold exploration activities and optimizing financial stability.

Timetable for the SPP

The SPP opens on November 6, 2024, with the offer period concluding on November 20, 2024. Results are scheduled to be announced on November 27, 2024, with newly issued shares expected to commence trading shortly thereafter. Further details will be shared in the offer booklet, to be released to eligible shareholders on November 4, 2024.

Through this capital raise, Red Mountain Mining is positioned to strengthen its operational capabilities, expand exploration potential, and maintain robust project momentum.

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