yes..............WA gold producer Red 5 is tidying up its register after it bedded down a $2.2 billion merger with rival Silver Lake Resources.
Gold producers Red 5 and Silver Lake merged in June. Rob Homer
Street Talk understands the company sent out Euroz Hartleys to find buyers for a $138 million stake in Red 5 after Wednesday’s closing bell. The block trade was priced at 34¢ a pop – on par with the closing price and a 5.94 per cent discount to the five-day volume-weighted average price according to a term sheet seen by this column.
It’s not your vanilla after-market block trade. Sources said the shares being sold by Euroz belonged to the pre-bid stake that Silver Lake had built in Red 5 over 2023, before the two camps agreed to a scrip merger in February. Usually, companies in a similar situation prefer to cancel these share once the merger comes into effect,
But Red 5 has chosen a rarer path, choosing to sell them via Euroz to boost its own $453.7 million cash and bullion balance sheet. Potential buyers weren’t offered a reasoning to Red 5 boss Luke Tonkin’s decision on Wednesday evening.
But fund managers know Red 5 has made no secret of its M&A ambitions beyond the Silver Lake deal. In particular, its Deflector mine’s reserves are down to 295,000 ounces of gold – and a replacement needs to be found soon. The $138 million selldown should go a long way in boosting its M&A firepower, should Tonkin pull the trigger on an acqusition.
- Forums
- ASX - By Stock
- RED
- Ann: Investor Presentation - Diggers and Dealers
Ann: Investor Presentation - Diggers and Dealers, page-28
-
-
- There are more pages in this discussion • 21 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
NEWS
Is oil undervalued?
Add RED (ASX) to my watchlist
(20min delay)
|
|||||
Last
33.5¢ |
Change
-0.010(2.90%) |
Mkt cap ! $2.278B |
Open | High | Low | Value | Volume |
33.5¢ | 34.3¢ | 33.0¢ | $7.086M | 21.00M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
26 | 1728335 | 33.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
34.0¢ | 191524 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
26 | 1728335 | 0.335 |
36 | 1358542 | 0.330 |
21 | 1282825 | 0.325 |
19 | 574907 | 0.320 |
10 | 348501 | 0.315 |
Price($) | Vol. | No. |
---|---|---|
0.340 | 191524 | 4 |
0.345 | 867425 | 18 |
0.350 | 922904 | 15 |
0.355 | 361445 | 9 |
0.360 | 324692 | 14 |
Last trade - 16.10pm 07/08/2024 (20 minute delay) ? |
Featured News
RED (ASX) Chart |