WA Gold Strategy
In August 2017, Red 5 announced plans to embark on a major new growth strategy in the Eastern Goldfields region of Western Australia after entering into binding agreements to acquire the operating Darlot Gold Mine from South African-based gold producer Gold Fields Limited (JSE, NYSE: GFI) and the advanced King of the Hills Gold Project from West Australian mid-tier gold producer Saracen Mineral Holdings (ASX: SAR).
These acquisitions were successfully completed in early October 2017, providing Red 5 with an extensive strategic footprint in the world-class Leonora-Leinster mineral district of WA, with the ability to leverage this position by pursuing a regional consolidation strategy aimed at establishing the Darlot mill as a central processing hub.
The completion of these transactions has also seen both Gold Fields and Saracen join the Red 5 share register as major shareholders with relevant interests of 19.92% and 10.54% respectively, representing a strong endorsement of the Company’s growth strategy and management team.
In April 2018, Red 5 further expanded its asset portfolio in the Eastern Goldfields with the acquisition of the Ockerburry Hill exploration licence (EL36/865), located 20km west of Darlot. The tenement covers a highly prospective part of the Yandal Greenstone Belt, and includes the Ockerburry Fault System and other interpreted mineralised structures.