$45mil placement @ .155

Siana Gold Project financing

An A$45 million equity raising has been completed
and, together with the award of an exclusive mandate to
consummate an innovative financing package of US$40 million,
will at financial close deliver full funding for the Siana development.
Importantly, the total package includes conservative capital
cost over-run and working capital provisions. Total gold delivery
commitments are minimal and less than one tenth of those
normally required with conventional project finance.
The equity placement of 290 million ordinary shares at 15.5 cents
per share was made to professional and sophisticated investors by
Petra Capital (Lead Manager) in Australia, Singapore and Hong Kong,
and Southern Cross Equities in London, for proceeds of A$44,950,000
before costs. The issue will be conducted in two tranches with 98 million
shares in Tranche 1 (A$15,190,000) to beissued immediately after receipt
of funds and 192 million shares in Tranche 2 (A$29,760,000) subject to
shareholder approval.
The equity placement was over subscribed with thirty one new
institutions joining the register.
The Company has also exclusively mandated Deutsche Bank AG,
Sydney branch and Ashmore Investment Management Limited,
a subsidiary of Ashmore Group plc, in relation to an US$40 million
senior secured financing for the project, following which any financing
commitment will be subject to normal detailed due diligence and all
necessary approvals.
Ashmore is a leading emerging markets fund manager based in the UK,
with US$31 billion under management worldwide. Ashmore has a long
standing association with the Philippines, having invested in hard
assets across a wide range of industries including mining, oil refining,
telecommunications, transport and high end commercial and
residential developments.
The Red 5 Limited Board, post receipt of the Notice to Proceed,
committed to the commencement of early infrastructure
development expenditure from existing treasury funds of
A$21 million. Tenders for construction and mining contracts
will be issued next week.
Greg Edwards
Managing Director