Sign up Australia
Proactive Investors - Run By Investors For Investors

Red 5 closes two landmark gold acquisitions in the Eastern Goldfields

The company is set to join the ranks of Australian gold producers.
gold bars
Red 5 will have a cash-flow base at Darlot

Red 5 Limited (ASX:RED) has completed the acquisitions of the operating Darlot Gold Mine and the advanced King of the Hills Gold Project in the Eastern Goldfields of Western Australia.

Darlot was acquired from a subsidiary of South Africa-based gold producer Gold Fields (JSE:GFI) after paying $6.5 million in cash and 130 million Red 5 shares.

The Darlot Gold Mine has been acquired by Red 5 as a going concern and mining and processing operations will continue through the ownership transition.

The King of the Hills project was acquired from gold producer Saracen Mineral Holdings (ASX:SAR) by paying $6.5 million in cash and 90 million Red 5 shares.

A further deferred consideration (in cash or shares) of $5 million is payable to Gold Fields within the next 24 months and $4.5 million to Saracen within the next 12 months.

The acquisition makes Gold Fields and Saracen two substantial shareholders in Red 5 with each party holding a relevant interest of 19.92% and 10.54% respectively.

Red 5 now has a production and cash-flow base at Darlot and a significant opportunity at the King of the Hills, where underground mining is targeted to commence next month.

The acquisition was completed after Red 5 raised circa $12.7 million via a rights issue.

Importantly, this opens a significant new chapter for the company as an Australian gold producer listed on the ASX.

The company’s shares closed circa 11% higher on Monday, at $0.049.

View full RED profile View Profile

Red 5 Ltd Timeline

Newswire
December 31 2012

Related Articles

1519132358_zinc-periodic-3.jpg
February 21 2018
Galileo's Star zinc project in Zambia is showing plenty of promise
lithium rock
Wed
Preliminary feasibility study (PFS) completed, definitive feasibility study (DFS) scheduled for delivery by the end of 2018.
cobalt on the periodic table
March 06 2018
Avondale is 13km from the company’s Fifield Project in New South Wales and previous exploration work focused on whether the deposit was rich in platinum group metals.

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