Red 5 Limited announces sale of shares and improved financial position

Red 5 Limited (ASX: $RED) has announced the sale of approximately 411.7 million Red 5 shares, resulting in a strong return on investment following the merger with Silver Lake Resources Limited in June 2024. Silver Lake's purchase of the shares in 2023 for $0.26 per share and their subsequent sale at $0.335 per share has generated proceeds of approximately $136.8 million, simplifying Red 5's capital structure and significantly improving its financial position. The company now holds cash and bullion of approximately $498 million with no outstanding debt, providing a solid foundation for future growth and investment opportunities.

Executive Commentary on Share Sale and Financial Position

The sale of the Red 5 shares marks a significant milestone for the company as it simplifies our capital structure and enhances our financial flexibility. The strong returns generated from the sale, combined with our robust balance sheet, position us well to maximize the value of our portfolio and pursue strategic opportunities. This aligns with our overarching goal of creating a diversified mid-tier gold miner with sector-leading financial strength. We are pleased with the outcome and look forward to leveraging our strengthened financial position for sustainable growth and value creation. - Luke Tonkin, Managing Director

Summary of Red 5's Share Sale and Financial Outlook

Red 5 Limited (ASX: $RED) has successfully sold approximately 411.7 million shares, realizing strong returns on its investment and significantly simplifying its capital structure. The sale, following the merger with Silver Lake Resources Limited, has bolstered the company's financial position, with cash and bullion of approximately $498 million and no outstanding debt. This enhanced financial flexibility provides Red 5 with the capacity to pursue strategic opportunities and maximize the value of its portfolio. The company's focus on creating a diversified mid-tier gold miner with sector-leading financial strength is well supported by its strengthened balance sheet. Looking ahead, Red 5 is well-positioned to capitalize on growth prospects and deliver sustainable value for its stakeholders.