PERTH (miningweekly.com) – Gold miner Red 5 has completed the retail component of its entitlement offer, raising A$20.82-million.
The company in March this year launched a fully underwritten non-renounceable entitlement offer, priced at 16c a share, to raise A$60-million as part of its greater financing efforts to fund the development of its King of the Hills project, in Western Australia.
More than 130.1-million shares were subscribed for under the retail component of the entitlement offer.
The institutional component of the 4-for-21 entitlement offer raised some A$39-million, and was completed in March.
In addition to the entitlement offer, Red 5 also unveiled a A$175-million finance facility to cover project funding.
The initial mine plan for King of the Hills estimated a mine life of 16 years, with gold production in years one to six expected to average 176 000 oz/y, while peak annual gold production of 203 000 oz/y will be achieved in 2024, benefitting from underground mining of one-million tonnes a year in years one to four.
To date, the project is some A$10-million under budget and on track to deliver its first gold production from the processing plant in the June quarter of next year.