Red 5 flags name change, pay rise

Goldminer Red 5 has flagged a name change and directors’ pay rise after its merger with Silver Lake Resources.

West Perth-based Red 5 has called for a general meeting of shareholders on September 25, seeking approval to change its name to Vault Minerals Limited and an increase to the non-executive directors' fees.

Red 5 cited the recent merger with fellow mid-tier goldminer Silver Lake Resources as reason for the name change and fee pool increase.

In June, Red 5 acquired 100 per cent of Silver Lake shares after receiving support from about 97 per cent of its shareholders.

“The company’s recent merger with Silver Lake transformed the company into a leading mid-tier gold company with diversified operations and growth opportunities in tier 1 jurisdictions,” the company’s ASX announcement said.

“Having regard to the transformational nature of the Silver Lake transaction, the board considers it appropriate to change the company’s name to assist in resetting the market’s perception of an investment in the company.”

Red 5, in its statement, said the Vault Minerals name embodied many key objectives in the company’s long-term strategy, mainly being a valuable producer and supplier of gold.

The company also proposed an increase to its non-executive directors’ fee pool, from $850,000 to $1.8 million.

The Red 5 board said the proposed increase was appropriate, given the increase in the company's size and portfolio after the Silver Lake merger.

In its statement, the company said the fee increase was reasonable and would appropriate remunerate additional directors who were appointed after the Silver Lake deal.

Shares in Red 5 last traded at 36 cents each, up 2.86 per cent as of 4.10pm AEST today.