World Gold Council

Analysis of the global market, liquidity, supply and demand, gold as a monetary asset. Market news and reports

www.marketintelligence.gold.org

Shares jump at Red 5 with new venture > Gold News > World Gold Council, gold market information and intelligence

Shares jump at Red 5 with new venture

Monday, 11th October 2004 (2452 views)

Gold developer Red 5 has revealed its shares have rocketed after the announcement of a new deal with South Africa's AngloGold Ashanti.

The Australian firm has signed a deal whereby AngloGold will back its new Philippines exploration at the Siana open pit mine.

According to AAP, shares increased by over 25 per cent after the deal was unveiled.

AngloGold will subscribe to 31 million Red 5 shares to raise $5.5 million and fund exploration that is being conducted to allow the firm to begin production within the next 12 to 18 months.

Once complete, AngloGold will have a 12.3 per cent share in Red 5 and will have the right to form direct equity joint ventures on the Philippines properties.