phone call from colin jackson

I had emailed RED 5 Wed the 21st, surprised to have received a phone call from Colin Jackson just now. I wrote down all i could as he was answering my questions, here's a summary.

Me:it be possible for
you to clarify the reason for Greg Edwards stepping down? Is there a bigger
issue here, or for some other reason?
CJ: the board asked GE to step down....he said "GE has excellent govt and community relations in the region and has done an exceptional job in that regards,but he has limited skills and lesser strengths when it comes to run a mine 24/7. He said that GE had kept a team on site for too long which were not the best, but now that has been sorted out with the new "A-grade" team in place.

He said he has just sent Gary Scanlan to phillipines few days ago who had just reported that mine and mill are running, however not at 100%. They are having powergrid issues which they are working on resolving. THey have just obtained a new generator of some sort ( sorry can't read my hand writing) which is on site now and working on finding a resolution to the power issues. He said they are working on it and from the sounds of it, it should be resolved soon.

Further he said they just purchased a "super pump" as was used at qld coal fields flood which has a big head and can pump water from the bottom of the pit to over the pit which is some 100m. Plus something about a direct diesel pump which is in fremantle and trying to get it on a ship to leave tomorrow, which if it does itll be on site on the 15th dec.

in regards to the silt, "all gone"

ME: Is a CR an option at the moment?

they are negotiating a new debt facility to replace the $8m sprott one for $25mil, that is, repaying the $8m from the new $25m so in essence $17m more. He said its pretty much approved just doing the final stages.

A equity issue is not an option.

he did say "....also other miners in the region are becoming friendlier with us" what ever that means!!

From my discussion with him, i got the feeling that this qtr the target will not be reached, however they are on the right track to achieve this with the new machinery, on-site team, and a new MD that will be on site all the time.

I have been a holder for some time and have topped up as recently as yesterday & will hopefully do so again before they resolve all their issues.

DYOR