The RTG Mining Inc. (ASX: RTG) share price skyrocketed this morning to be up by as much as 124.64% in early trade. At the time of writing, the small-cap ASX mining share is sitting 81.16% higher for the day at 12.5 cents per share.
RTG Mining is a mining and exploration company dual-listed on both the ASX and Toronto Stock Exchange. The company has built 7 gold mines in 5 countries on 3 continents and is currently focused on progressing its 8th development project, Mabilo, a high-grade copper-gold mine in the Philippines.
The Mabilo Project is currently in the final stages of permitting and near-term production is anticipated.
Why the RTG Mining share price has gone through the roof
This morning, RTG Mining announced that Mt Labo Exploration and Development Corporation, which holds the Mabilo Project, has been granted a mining license.
The Mines and Geosciences Bureau (MGB) has approved the expansion of the current Mineral Production Sharing Agreement for the Nalesbitan Project (another RTG project with “excellent” copper porphyry potential) to include the Mabilo Project.
As a result, the Mabilo Project has been granted a Declared Mine Feasibility Study and Environmental Clearance Certificate.
“Mt. Labo has been working closely over an extended period with the MGB to secure this important milestone for the project and is deeply appreciative of the considerable effort and support provided by the MGB,” the announcement read.
Recent capital raising
Today’s update comes on the back of a capital raising that was announced last week. RTG Mining received commitments to raise approximately US$6 million (~A$9.2 million) in a private placement to Australian and international institutional and sophisticated investors – priced at 5.7 cents per share.
The proceeds of the placement will be used to continue to support the advancement of the Mabilo Project towards start-up, and also pursue new potential business development opportunities. Additionally, RTG Mining will use the funds to partially repay its corporate loan facility.