PERTH (miningweekly.com) – ASX-listed gold miner Red 5 has launched a nonrenounceable rights issue with the aim of raising some A$12.7-million to fund the initial cash consideration to acquire all of the shares in Darlot Mining company.
The one-for-three nonrenounceable rights issue will be priced at 5c a share, with more than 254.8-million shares to be issued to shareholders in Australia and New Zealand.
The rights issue has been partially underwritten by St Ives Gold Mining Company, to the sum of A$8.5-million, with a sub-underwriting commitment from Saracen Mineral Holdings of A$1.5-million.
Red 5 recently unveiled a new growth strategy that would include the acquisition of the Darlot gold mine from South Africa’s Gold Fields for a total consideration of A$18-million and the acquisition of the King of the Hills project, from Australian miner Saracen Mineral Holdings for A$16-million.
The company said on Thursday that the initial cash consideration of the King of the Hills project would be funded by existing cash resources.