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