In return, Australia-based Red Mountain has issued Mindoro 100 million fully-paid ordinary shares and 50 million performance shares, together worth A$10m. The ordinary shares are escrowed for 12 months.
Mindoro now holds 55.8% interest in Red Mountain. The 50 million performance shares will be converted to ordinary shares by the end of October 2013, if Red Mountain upgrades the indicated resources at Batangas to 600,000oz of gold and the scoping study indicates a viable gold mining project.
Red Mountain chairman and acting CEO Neil Warburton said, "Our strategy is three tiered, convert low grade/high tonnage gold resources into higher grade mineable reserves, use existing infrastructure to fast track development, further explore our large land holdings and test multiple targets to establish long mine life."
