Red 5 secures exploration funding

Company News

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.

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