Redback spins a golden web

WITH the gold price still sulking in the basement, it is mighty hard for junior explorers rattling the tin for cash.

Perth-based Red Back Mining NL has done well to raise $1.47 billion to fund the second stage of a pre-feasibility study at its Chirano gold project in Ghana.

The money will also provide additional working capital to test exploration targets outside the known Chirano resources that are put by Red Back at 1.38 million ounces of gold.

Success at Chirano would be a “company maker” for Red Back. The recent placement will expand the issued capital to 71.3 million capitalising the company at a modest $10.7 million.