Red 5 secures $88m equity, debt package
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West Perth-based Red 5 has secured funds for its Siana gold project in the Philippines, having completed a $45 million capital raising and secured a $US40 million ($A43 million) financing facility.
The equity and debt funds are more than enough to cover the cost of the $79 million project, with the total package including conservative capital cost over-run and working capital.
Red 5 said total gold delivery commitments are minimal and less than one-tenth of those normally required with conventional project finance.
The equity raising comprised of the placement of 290 million shares at 15.5 cents each, made to investors in Australia, Singapore and Hong Kong by Petra Capital.
Red 5 said the equity placement was over subscribed with 31 new institutions joining the register.
The company also exclusively mandated Deutsche Bank AG and Ashmore Investment Management, a subsidiary of Ashmore Group, in relation to a $US40 million senior secured financing for the project.
The facility is subject to due diligence and necessary approvals.
Shares in Red 5 shed two cents to 16c at 15:20 AEDT.