Red 5, Saturn & Chesser have managed to raise $$ in this challenging equity market environment
Billy Ocean once said, “When the going gets tough, the tough get going”. Raising money may be tough right now, but these sturdy gold explorers and miners are still managing to attract crucial investment dollars.
The latest is ambitious +100,000ozpa WA miner Red 5 (ASX:RED), which raised $125m in an oversubscribed placement to sophisticated and professional investors at 18c per share.
The cash will help Red 5 “transition efficiently into project development” at the 4.1-million-ounce King of the Hills bulk open pit and underground gold project, once a final study is completed in the September quarter.
Red 5 managing director Mark Williams says this is a good result in a challenging equity market environment.
“This strong outcome reflects the market’s confidence in the growth pathway we have mapped out, which will see Red 5 evolve into a multi-asset, mid-tier gold producer over the next two years,” he says.
A ~$3m raising means Saturn can crack on with exploration drilling and resource definition at its +780,000oz Apollo Hill gold project near Leonora in WA.
The funds will go into the ground at the recently discovered high-grade Apollo Hill hanging-wall lodes, and the high-grade Calypso discovery 3.5km to the east.
Saturn managing director Ian Bamborough says this extra cash puts the company in a great position.
“High grades in the hanging-wall at Apollo Hill, and now across the broader camp, are offering an exciting opportunity for next level discovery,” he says.
“With a strong balance sheet, a robust resource base from which to grow, and exciting new targets to test, I look forward to the results flow and a prosperous future for Saturn Metals.”
A $1.68m share placement will fund Chesser’s next big drilling program at the high-grade gold discovery at Diamba Sud in Senegal.
Chesser managing director Mike Brown says the upcoming drilling will focus on a likely ‘feeder’ structure identified in the Area A discovery and other high potential zones.
“We look forward to updating the market on commencement of this program and entering into a potentially transformative cycle for Chesser,” he says.