Red 5 to raise A$90m

23rd February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Junior gold miner Red 5 has completed a fully underwritten A$90-million capital raise to support work at the newly commissioned King of the Hills (KOTH) mine, in Western Australia.

The ASX-listed miner has completed a bookbuild for a fully underwritten A$80-million two-tranche share placement, which is being conducted in conjunction with a fully underwritten share purchase plan (SPP) aimed at raising a further A$10-million.

Some 593-million shares will be placed at 13.5c a share under the share placement, with the first tranche to consist of some 419-million shares to raise A$56.5-million under Red 5’s initial placement capacity.

The second tranche of 174-million shares, to raise a further A$23.5-million, will be subject to shareholder approval at a general meeting scheduled for mid-April.

The SPP will give eligible shareholders the opportunity to subscribe for up to A$30 000 of new shares in the company, also at a price of 13.5c each, will open on March 2 and close on March 21.

The offer price of 13.5c a share represented a 22.9% discount to Red 5’s last trading price and a 26.7% discount to the company’s ten-day volume weighted average share price.

“We are delighted with the support for the placement. I would like to sincerely thank our existing shareholders for their ongoing support and welcome a number of new highly credentialled investors to the register,” said MD Mark Williams on Thursday.

“Following the completion of the equity raising, the KOTH operations will benefit from a stronger balance sheet and is well positioned for future growth.”

Funds raised will ensure that Red 5 is well funded to support steady-state operations a KOTH, and to provide the company with balance sheet flexibility to accelerate future investment in production and mine life growth, said Williams.

Red 5 declared commercial production at KOTH in December last year and produced 36 260 oz of gold during the three months to December.

Edited by Creamer Media Reporter


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