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Tuesday, March 31, 2020 - 4:55:00 PM
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Mining News Pro - Red 5 has made a $125 million share placement to investors to support the development of its King of the Hills (KOTH) gold project in Western Australia’s Eastern Goldfields.
KOTH is one of Australia’s premier up and coming gold projects and this capital raising is an important step in Red 5 entering the next phase of growth.
The share placement de-risks funding requirements to develop Red 5’s proposed bulk open pit and underground mining and processing operation at the KOTH project.
Red 5 managing director Mark Williams said he is delighted with the positive support the company has received from new and existing investors.
“This strong outcome reflects the market’s confidence in the growth pathway we have mapped out, which will see Red 5 evolve into a multi-asset mid-tier gold producer over the next two years,” Williams said.
“The capital raising significantly de-risks our funding requirements at KOTH, which is now well established as one of Australia’s premier emerging gold projects.
“We will also be well placed to maintain our long-term focus on exploration, which has already created significant value for our shareholders.”
Completed at $0.18 per share, the placement will be finished in two tranches, with tranche one comprising 171.5 million shares worth $30.87 million expected to settle on April 3.
The second tranche, which is subject to shareholder approval at Red 5’s annual general meeting on May 6 will be 522.94 million shares valued at $94.13 million, expected to settle on May 12.
The Red 5 board will contribute $0.47 million to the second tranche of the placement if it gains shareholder approval.
The company is also maintaining its investment in exploration at the nearby Darlot gold mine and broader exploration of the KOTH system and surrounding tenements.
The final feasibility study for the KOTH gold project is due to be completed in the September quarter.
Short Link:
https://www.miningnews.ir/En/News/508789
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