Petra buys up big stake in Red 5 for mystery client
Some 12 per cent of West Australian gold producer Red 5 Limited has traded hands through stockbrokers at Petra Capital.
While the identity of the buyer is not yet clear, fingers were being pointed toward Raleigh Finlayson’s Genesis Minerals.
Red 5 was left at the altar as its Leonora gold neighbours went down the M&A path. Genesis consolidated the region, first buying Dacian and then — after lengthy discussions — St Barbara in a deal completed this year.
St Barbara’s Gwalia gold mine is the largest operation in the Leonora region. Getty
Red 5 casually mentioned discussions with St Barbara in an investor presentation this time last year, surprising investors. In 2020, Red 5 also knocked down an off-market takeover bid from Ramelius Resources.
It has been a frequent visitor to equity capital markets, with recent calls focused on paying down debt and helping it tide over operational troubles.
More to come
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