Red 5 taps Canaccord, Petra for $70m raising
WA gold producer Red 5 loves raising money in March!
Gold outfit Red 5 is mulling a capital raising.
A year since tapping the market for $125 million in fresh equity in March last year, Street Talk understands Red 5 is back this month with a $70-odd million capital raising.
Sources said Red 5 had Canaccord Genuity and Petra Capital warming up funds for the deal on Tuesday night, which was expected to launch as early as Wednesday morning.
In addition to the raising, it is understood Red 5 had locked in a $180 million debt financing package – thanks to Macquarie – for its King of the Hills (KOTH) project, a gold mine in central Western Australia.
The company announced it was in the final stages of getting the funding package together on Monday this week, as part of an update to the market about how the KOTH project was travelling.
Red 5 said the project’s development was “tracking under budget and on track to deliver first gold production from the KOTH processing plant in the June 2022 Quarter”