Red 5 Ltd. said Aug. 5 that it secured a A$20 million working capital facility from Macquarie Bank Ltd.
It will use the facility to refinance its gold loan facility with Malaysia-based investment fund Asian Investment Management Services Ltd. on improved terms.
The Macquarie facility has a two-year term ending June 30, 2021, and is secured against Red 5's Australian assets. Principal repayments start on a quarterly basis from the March 2020 quarter.
Hedging will be in place for about 13,000 ounces per quarter over the loan term.
A recent pre-feasibility study for the company's King of the Hills gold project in Western Australia outlined preproduction capital expenditure of A$218 million to build a new carbon-in-leach processing plant on-site with a capacity of 4 million tonnes per annum.