ann out rights issue to recommence prod , page-53

I only have a very small investment in RED, as I have been waiting until RED can prove they are able to operate a mine profitably, before I invest more. Without a capital raising of some type RED would most likely go into liquidation and then there would be a ‘fire sale’ and shareholders would get nothing. If RED did a capital raising at 35c, to ‘institutional and sophisticated investors’ only, most current shareholders would be complaining. I think the ‘rights issue’ is a fair way to raise capital and I will be taking up my entitlements and I will probably be applying for more. If the capital raising is a success it looks like it will be at least another 12 months before we find out if RED can operate profitably.

RED is a very risky investment but so are most of the 'small cap' miners and explorers.

Good luck, we will need more than our fair share.