Red5 (ASX:RED) has fully drawn a new US$25 million prepaid gold swap facility recently entered into with Credit Suisse, the proceeds of which will be used to engage a second earthmoving contract at its Siana mine in Philippines.
The facility, which was entered into by Red5's Philippine subsidiary Greenstone Resources Corporation, is repayable over thirty months starting six months after draw down.
The repayment schedule includes interest at a commercial rate and amortised establishment fees.
Also in order to protect the loan, the facility provides GRC with a zero cost put and call structure over 40,000 ounces, which is about 13% of the production during the loan period.
The funds will be used to the award of a second earthmoving contract, which will speed up the waste movement as well as to various minor capital productivity and efficiency expenditure.
Red5 is focused on developing the Siana gold mine in the Mindanao Island in the Philippines.
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