PERTH (miningweekly.com) – Gold miner Red 5 has entered into a gold loan facility of 5 015 oz with Malaysia-based investment fund Asian Investment Management Services.
The gold will be made available in one tranche, with the facility to have a term of 12 months, and will be secured by a security interest in Red 5’s Australian operating subsidiary companies, on a limited recourse basis.
Red 5 previously told shareholders that it was considering a debt facility of between A$10-million and A$15-million to provide the company with additional working capital.
The miner said on Friday that the interim facility has been drawn down for net proceeds of around A$8.2-mlilion, and along with cash flow from existing operations, will be used to advance the development of the Darlot and King of the Hills operations, and to maintain ongoing exploration momentum at both mines, as well as for general working capital purposes.