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 $138 million selldown should go a long way in boosting its M&A firepower, should Tonkin pull the trigger on an acqusition.
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Open | High | Low | Value | Volume |
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---|---|---|
17 | 1710117 | 30.0¢ |
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Price($) | Vol. | No. |
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31.0¢ | 290135 | 11 |
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17 | 1710117 | 0.300 |
11 | 1296860 | 0.295 |
15 | 722402 | 0.290 |
30 | 1292788 | 0.285 |
31 | 1212793 | 0.280 |
Price($) | Vol. | No. |
---|---|---|
0.310 | 290135 | 11 |
0.315 | 805152 | 11 |
0.320 | 1058714 | 15 |
0.325 | 522609 | 11 |
0.330 | 885886 | 13 |
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