Red 5 completes first part of raising
PERTH (miningweekly.com) – Gold miner Red 5 has completed the first tranche of its A$90-million capital raise announced last month.
The company on Thursday reported that it had issued more than 418.9-million shares at a subscription price of 13.5c each to raise A$56.55-million, with the shares issued under Red 5’s existing placement capacity.
The second tranche of the share placement, consisting of a further 173.67-million shares to raise a further A$23.45-million, is subject to shareholder approval at a general meeting scheduled for mid-April.
The company is hoping to raise a further A$10-million in a share purchase plan, which will close on March 21.
Funds raised will ensure that Red 5 is well funded to support steady-state operations at King of the Hills (KOTH) gold mine, 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.
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