Red 5 has declared the King of the Hills (KOTH) gold project fully funded after it confirmed that $175 million has been secured for the Western Australian operation.
Red 5 completed its final feasibility study in September last year, which considered the construction of a four million tonnes a year bulk open pit and underground mining and processing operation.
The 2.4 million ounce, 16-year project will use the funding for development and drilling, with Red 5 aiming to pour first gold in the June quarter of 2022.
Red 5 managing director Mark Williams said the capital raising exercise marked a significant milestone in the development of KOTH.
“It is also a critical juncture for Red 5 as we continue on our pathway to becoming a mid-tier Australian gold producer,” Williams said.
The project expects to pour an average of 176,000 ounces every year for the first six years.
Williams said the funding would cement KOTH as one of the most promising developments in the Australian gold mining industry.
“With multiple work streams already well under way and our (engineering, procurement and construction) contractor advancing to phase two of the plant construction contract, KOTH is a busy work environment, as we have outlined in recent announcements,” Williams said.
“Having received commitments for the project financing Red 5 can move ahead with the development of one of the most significant new long-life gold projects currently under development in Australia.”
KOTH has progressed positively over the past six months, as approvals and materials rolled in on time and under budget.
Red 5 stated the project was $10 million under budget at the beginning of March.
“On behalf of the board of directors, I would like to thank our existing shareholders for their ongoing support as we move into the next phase of the KOTH development,” Williams said.