The company has also given MACA the go-ahead to commence phase two of the $129 million engineering, procurement & construction (EPC) contract that was awarded last November.

This phase allows MACA to start rallying its construction teams before the second half of this year.

Red 5 expects to pour first gold at the 2.4 million ounce, 16-year project by mid-2022, with managing director Mark Williams saying that everything has remained on track.

“We are very encouraged by the important milestones being achieved,” Williams said.

“We are looking forward to the next step-up in activities during the June 2021 quarter as the key elements of the new large, long-life Australian gold mine continue to take shape.”

Red 5 expressed its confidence in the KOTH project last November when it awarded contracts and committed to materials before securing a loan.

Red 5 stated the project remained $10 million under budget.

Debt financing is almost settled, as a Tier 1 banking group is expected to confirm within the month, while Williams said long-lead equipment was on schedule.

“The manufacture and delivery to Australia of all key long-lead items for the plant is also on track, which will help to ensure that key construction and installation milestones can be achieved once construction of the plant moves into full swing in the second half of the year,” Williams said.

The EPC contract also included the purchase of a six million tonnes a year gyratory crusher and four million tonnes a year SAG mill.