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Highlights
- St Barbara's shares were 5.76% up at AU$0.74 apiece on ASX at 2.05 PM AEST.
- In an ASX filing today, St Barbara referred to the trading halt and ASX announcement by Red 5.
- Red 5 and St Barbara have started discussions for funds.
Shares of materials company St Barbara Limited (ASX:SBM) were trading higher on ASX today (30 September). At 2.05 PM AEST, the company's shares were 5.76% up at AU$0.74 apiece on ASX. This outperforms ASX 200 Materials index, which was 0.35% higher at 15,198.30 points at 2.08 PM AEST. Sectorally, only materials was trading in the green of all 11 sectors.
In an ASX filing today, St Barbara referred to the trading halt and Leonara gold miner Red 5 Limited’s (ASX:RED) ASX announcement. St Barbara informed that a Red 5 presentation related to its capital raise plans also stated that both companies have begun discussions.
In the past presentations, Craig Jetson, Managing Director and CEO of St Barbara, had referred to conversations with several other parties in the Leonora region. “St Barbara confirms these discussions with Red 5 are one of those discussions with operators in the region regarding a potential business combination or combinations aimed at consolidation of the Leonora Province and the unlocking of operating and development synergies in the region,” the ASX release added.
St Barbara further informed that the conversation with Red 5 was quite preliminary with no understanding or agreement reached so far. There is no certainty that any agreement would be achieved between the parties about the terms of any combination, St Barbara said.
Image Source: © Neillockhart | Megapixl.com
Red 5's fundraising
In an ASX filing on Thursday (29 September), Red 5 had said that it was looking to raise AU$60 million in fresh equity from the market at 16 cents per share, a 15.8% discount from its last traded price of 19 cents per share.
The company needed funds for working capital and to expand and drill at its new King of the Hills (KOTH) mine in the Goldfields.
Meanwhile, Red 5 operates two gold mines. Red 5 reported a mineral Resource of 4.75Moz and an Ore Reserve of 2.7Moz as of 30 June 2022 at its KOTH gold mine.
