Red 5 Ltd
(ASX:RED) has secured a short-term US$25 million gold prepay financing package, plus an equity commitment of US$25 million.
The funds will be used to complete the financing for its Siana gold mine as well as putting aside US$20 million to accelerate growth at Mapawa project.
The mineral explorer has accepted the prepay financing package from Sprott Asset Management LP and Sprott Resource Lending Partnership Toronto, in addition to a commitment for a US$25 million share placement.
The gold prepay arrangement requires Red 5 to deliver a back ended 28,700 ounces of gold or the cash equivalent over 21 months from October next year.
For the year ended on 30 June 2010, Red 5 posted a net loss.
