- Red 5 (RED) has raised $39 million through the institutional component of its fully underwritten non-renounceable entitlement offer
- This component issued about 245 million shares at 16 cents and will be followed by the retail component
- The retail entitlement offer will open on March 24 and will issue 130 million shares at 16 cents to raise $21 million
- Red 5 will use the total $60 million for its King of the Hills Project in WA as well as for drilling and development work at the nearby Darlot Gold Mine
- Red 5’s shares have ended the day 13.5 per cent in the red and closed at 16 cents
Red 5 (RED) has completed the institutional component of its four-for-21 fully underwritten $60 million non-renounceable entitlement offer.
The institutional component of the entitlement offer raised $39 million through the issue of about 245 million shares at 16 cents per share.
Red is using the money for its King of the Hills (KOTH) Project which is located 80 kilometres south of Red’s Darlot Gold Mine in the Eastern Goldfields region of Western Australia.
The KOTH Project is expected to produce an average of 176,000 ounces of gold in the first six years of production, with a total mine life of 16 years.
The ASX-lister will also use the funds to conduct drilling and development programs at the Darlot mine and for general working capital.
“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 KOTH project,” Managing Director Mark Williams said.
The second and final component of the entitlement offer is the retail component, which is set to raise $21 million.
About 130 million shares will be issued, also at 16 cents, through the retail entitlement offer which will open on March 24 and will close on April 9.
Red 5’s shares have ended the day 13.5 per cent in the red and closed at 16 cents.