ASX ANNOUNCEMENT
ASX : RMX
Company Directors
Jeremy King Jason Bontempo Lincoln Ho
Company Secretary
Shannon Coates
RED MOUNTAIN MINING LTD
21 October 2016
RED MOUNTAIN SHARE PURCHASE PLAN
Further to the announcement on 22 August 2016, Red Mountain Mining Limited (the Company, Red Mountain or RMX) is pleased to announce a Share Purchase Plan (SPP) for a maximum of $350,000 through the issue of up to 35,000,000 shares at an issue price of $0.01 per share. If applications are received in excess of $35,000, the current intention of the Directors is to scale back the applications on a pro rata basis. The Directors reserve the right to increase the maximum amount to be raised under the SPP.
Red Mountain is offering Shareholders whose registered address is in Australia and New Zealand as at 5:00pm (WST) on the Record Date of Thursday, 20 October 2016 (Eligible Shareholders) the opportunity to subscribe under the SPP for up to A$15,000 worth of Shares (subject to scale back at Red Mountain's absolute discretion) at an issue price of
$0.01 per share, which represents less than a 20% discount to the volume weighted average market price (VWAP) of Shares over the last 5 days on which sales were recorded on the financial market operated by ASX Limited (ASX) immediately prior to the date of this announcement (Issue Price). The Issue Price is free of brokerage and commission.
The funds raised pursuant to the SPP (and any shortfall that is placed) will be applied towards:
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continuing to optimise the Company's Batangas Gold Project (Batangas Project);
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identification and assessment of new opportunities; and
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to provide general working capital.
It is proposed that the following timetable will apply with respect to the SPP:
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Record Date (5:00pm WST)
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20 October 2016
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Announcement Date of Plan
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21 October 2016
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Despatch of SPP Offer and Application Form
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24 October 2016
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Opening Date of Plan
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24 October 2016
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Closing Date of Plan (5:00pm WST)
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31 October 2016
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Issue of Shares under the Plan
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7 November 2016
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Quotation of Shares
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9 November 2016
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The timetable is indicative only and subject to change. The Company reserves the right to change the timetable at any time or cancel the SPP at any time before the New Shares are issued, subject to regulatory requirements.
For and on behalf of the Board
Shannon Coates Company Secretary