Red 5 secures 100% funding to build King of the Hills mine
(Kitco News) - Red 5 Limited (ASX: RED) reported today that the King of the Hills gold project (KOTH) in Australia is now fully-funded after Red 5 secures commitment for A$175m in debt facilities and launches fully underwritten A$60m entitlement offer to shareholders.
The company said that funds raised from the entitlement offer will be applied to KOTH development, drilling and development programs at the Darlot gold mine and general working capital. Funds from the debt facilities will be applied to the development of KOTH.
Red 5 added that this is another critical step in the company’s growth pathway to become a substantial mid-tier Australian gold producer. 2.4Moz KOTH project is on track for first gold in the June quarter 2022, with a 16-year life-of-mine and the first six years of gold production averaging 176koz pa.