Sign up Australia
Proactive Investors - Run By Investors For Investors

Red 5 raising up to $60 million to restart Philippines gold operations, repay debt

Red 5 raising up to $60 million to restart Philippines gold operations, repay debt

Red 5 Limited (ASX: RED) is raising up to $60 million to recommence operations at its Siana gold mine in the Philippines and repay its outstanding debt facility.

The company plans to raise up to $50 million through a private placement of 500 million shares priced at $0.10 each to domestic and international institutional as well as domestic sophisticated investors.

It will also raise a further $10 million through a share purchase plan to existing shareholders. This includes a provision for oversubscriptions up to a further $5 million.

Proceeds will be used to implement the planned interim tailings storage solutions at the Siana gold mine ahead of planned recommencement of mining operations and to repay the debt facility with the company’s senior lender.

The combined equity raising replaces the non-renounceable Entitlements Offer which closed on 30 August 2013 and raised $8.7 million. Application monies received under the Entitlements Offer will be refunded in full.

Milling at Siana ceased on 25 April 2013 following tailings dam wall compromise and the mine site was placed on care and maintenance during May/June.

The project, as originally designed, delivers a minimum 849,000 ounces of gold production at a cash cost of sub US$400 per ounce over a ten year life

The Siana orebody remains open to the north and south, and below 400 metres vertical. The first gold was poured in February 2012.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

View full RED profile View Profile

Red 5 Ltd Timeline

December 31 2012

Related Articles

electric car
July 20 2018
Commissioning at Sonora is intended for the first-quarter of 2020
reverse circulation drill rig
August 10 2018
The near-term goal at Garden Gully is to deliver a maiden JORC resource.
lithium rock
Preliminary feasibility study (PFS) completed, definitive feasibility study (DFS) scheduled for delivery by the end of 2018.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use