PERTH (miningweekly.com) – Gold miner Red 5 has completed the institutional component of its 4-for-21, fully underwritten accelerated non-renounceable entitlement offer, raising some A$39-million.
The company earlier this week unveiled a A$175-million finance facility to fully fund the development of its 2.4-million-ounce King of the Hills project, in Western Australia.
In addition, the company also launched a fully underwritten non-renounceable entitlement offer, priced at 16c a share, to raise a further A$60-million.
Red 5 on Friday said that it had now completed the bookbuild for the institutional component of the entitlement offer for the issue of some 245-milllion shares, at a price of 16c each.
The retail component is expected to raise a further A$21-million through the issue of 130-million shares, also priced at 16c each.
“The launch of the fully underwritten capital raising this week marked a critical step in Red 5’s development strategy, providing the balance of funding for the King of the Hills project,” said Red 5 MD Mark Williams.
“We are delighted with the support received from our existing institutional investors. The entitlement offer is also available for our retail shareholders to ensure that all Red 5 shareholders are given the opportunity to participate in the funding for the King of the Hills project.”
The retail component of the entitlement offer will open on March 24 and will close on April 9.