AFR: WA gold miner Red 5 presses go on $125m raising
WA gold producer Red 5 was fronting funds on Thursday in its bid to raise $125 million in fresh equity to fund one of its gold projects.
The two-tranche placement was priced at 18¢ a share, a 23.4 per cent discount to Red 5’s 23.5¢ last close, according to terms sent to fund managers.
Boutique broker Petra Capital was lead manager on the deal and was calling for bids by 3pm on Friday. Canaccord Genuity was also on the ticket.
The first tranche in the placement would raise $30.9 million and the second tranche was conditional on shareholder approval being granted at a general meeting in May.
Funds were told the bulk of the money raised would be used to develop Red 5’s King of the Hills project, a gold mine in central Western Australia.
The King of the Hills project contains a 4.1 million ounce gold mineral resource.
Source: The Australian Financial Review