Red Emperor raises $5m

Red Emperor Resources has tapped investors for £2.8 million (approximately $5 million) from a share placing to increase working capital as it prepares for the drilling of the Winx-1 exploration well in Alaska.

Under the placement, the West Perth-based company issued 100 million shares at 2.8 pence each, which equates to 19 per cent of its enlarged share capital.

Brandon Hill Capital acted as the UK broker to the oversubscribed placement, 708 Capital acted as broker in Australia, while Max Capital was the corporate adviser.

Red Emperor has a 31.5 per cent interest in the Winx-1 project, and on Monday the company announced it was on track to start drilling operations by mid-February.

Fellow Perth-based explorer 88 Energy owns a 40 per cent stake in the project.

Red Emperor managing director Greg Bandy said the interest shown in the placement was overwhelming and extremely encouraging.

“We look forward with great anticipation to what is potentially a transformational exploration campaign next month,” he said.  

Shares in Red Emperor were up 3.5 per cent to trade at 5.8 cents each at 3.30pm AEDT.