Red 5 pounces on neighbour

RED 5 has wasted no time in advancing its Eastern Goldfields consolidation strategy, announcing a proposed hostile takeover of an unlisted gold developer.

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Bullseye Mining has a current JORC resource inventory of 373,000 ounces of gold, with its portfolio including the Laverton project, around 30km to the north of Red 5’s operating Darlot mill.

Red 5 had been trying to hold discussions with Bullseye since December, but the smaller company refused to engage.

As a result, Red 5 is planning to go straight to shareholders with a one-for-five offer valuing Bullseye at around A$4 million.

Bullseye has 285.5 million shares on issue and Red 5 noted that outstanding options and warrants were only issued to Bullseye directors after Red 5 made its initial approach.

Fremantle-based Bullseye was formed in 2006 by Peter Burns and had been...