SYDNEY: Saracen Mineral Holdings has sold its 10.5% interest in Red 5 Limited for approximately A$39 million. The sale was completed at A30c per share via book build process before the ASX market open on 30th January 2020.
Saracen Managing Director Raleigh Finlayson said the proceeds of the sale would be used to pay down debt associated with the Company’s recent acquisition of a 50 percent share of the Kalgoorlie Super Pit.
“Reducing the debt used to fund the Super Pit purchase is a key priority for us and the Red 5 sale reflects that strategy,” Mr Finlayson said.
“I would like to acknowledge the outstanding work done by Red 5 Managing Director Mark Williams and his team in establishing a substantial gold resource at the King of the Hills project.“On behalf of Saracen, I wish Red 5all the best for the future.”
Saracen acquired the King of the Hills (KOTH) and Kailis projects from St Barbara Limited for A$3.0 million in 2015. Saracen sold KOTH to Red 5 in August 2017 for A$7 million in upfront cash, 90 million Red 5 shares issued at a deemed price of A5c per share, and A$4.5 million in deferred cash.
Saracen acquired another 40.6 million Red 5 shares at A5c per share for A$2.0 million in Red 5’s August 2017 rights issue to take its total holding to 130.6 million shares, all of which Saracen has now sold.
Edited by Nayyar Iqbal