PERTH (miningweekly.com) – Gold miner Red 5 has raised A$125-million in a share placement to sophisticated and professional investors to develop the proposed integrated bulk openpit and underground mining and processing operation at King of the Hills, in Western Australia.
The share placement, which was priced at 18c a share, consisted of two tranches, with the first comprising 171.5-million shares to raise an initial A$30.87-million.
A second tranche placement of 522.94-million shares, to raise an additional A$94.13-million, will be subject to shareholder approval.
“We are delighted with the strong support received from existing and new investors, particularly given the current challenging equity market environment,” said Red 5 MD Mark Williams.
“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, midtier gold producer over the next two years The capital raising significantly de-risks our funding requirements at King of the Hills, which is now well established as one of Australia’s premier emerging gold projects.”
Williams said that the completion of the placement put Red 5 in a strong position to transition efficiently into project development following the completion of the bulk mining final feasibility study in the September quarter of this year.
“We will also be well placed to maintain our long-term focus on exploration, which has already created significant value for our shareholders. We expect this to continue as we maintain our investment in exploration at Darlot as part of our Darlot mining hub strategy and continue to explore the broader King of the Hills system and surrounding tenements.”