Red Mountain Mining (ASX:RMX) has secured commitments from both new and existing professional and sophisticated investors to raise AU$400,000 through a convertible note issuance, according to a Friday filing with the Australian bourse.
The funds will be used for advancing reverse circulation (RC) drilling at the Kiabye Gold Project in Western Australia and towards exploration at the Armidale Antimony-Gold Project in New South Wales, the filing said.
The notes have a face value of AU$1 each, and are convertible at a 25% discount to the company's 5-day volume-weighted average price or $0.006 per share, and a coupon rate of 10% per annum.
Further 20 million unlisted options with a strike price of AU$0.011 each and a three-year expiry are attached to the notes.
Xcel Capital was the lead manager for the capital raise.
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