Hi ALL,I just got word that the announcement on finance had been...

Hi ALL,

I just got word that the announcement on finance had been made by RED and wanted to find out all the details.

To be perfectly honest I am very surprised for a number of reasons, and I've got to add that I have some mixed feelings with the outcome. BUT that doesn't change my overall view that:

1. With finance agreed RED can now get on with adding the value that we have been waiting for over many years;

2. Even with the increased shares to be issued, the current share price of 16 cents remains at a substantial discount, based on Siana alone. (I want to work the number on my computer when I get home over the weekend before being any more specific, but back of the envelope suggests anything less that 28 cps (I may be wrong +/- a couple of cents) is a DISCOUNT! The significance of that is that any instos due to get on the register remain motivated they are onto a winner at current prices!

3. Mapawa is due to add speculative value beyond the Siana valuation, this should provide more upside beyond that number (of 28 cps +/-).

4. I am surprised at the amount in total raised - it appears to be considerably in excess of the BFS amount (which had a contingency in the numbers as well). (Reference is made of a working capital component, that seems like they have plenty of cash to undertake considerable drilling, both at Mapawa and in the lead-up to Siana (which is likely to increase resources for the base case scenario).

5. I am surprised that RED is only required to complete hedging (yes Anderbond they are referring to hedging with the gold deliveries) considerably less than usual. I would like to understhat what the details of that are, but in todays current over-heated gold market its good that RED has more flexibility to pursue a gold sales strategy unemcumbered by highly self-centred banks that have forced margin calls etc in other financing arrangements.

6. It is unclear of the extent of due diligence referred to, but presumably it is more linked to the debt component of the funding.

By the way, some posters have been disappointed with the extent of selling - I suggest that all the selling at the moment is by others unrelated to the equity being currently raised (unless they already hold small equity in past trading) - RED has NOT issued any shares to the Soph Inv or Insto's under this arrangement yet, you will only see this once a Form 3b is issued by RED. And for only the first tranche of funding.

In conclusion I am a bit surprised of the extent of funds raised, and the equity component is more than had been expected, BUT RED share price remains at a substantial discount, the finance ASSURES that we are investing in a significant low cost gold producer of the future, in a long term gold project.

I will not sell any shares as a result of this news, I may decide to buy more once I get home and do some work on it, and I know that it won't remain at this level for very long once the market appreciates what has occurred.

[And the most important aside, is that I had a FANTASTIC DREAM about drilling at Mapawa - but keep that to yourselves!!!]

Go RED Go (UP THAT IS!).