Red 5 Limited (ASX:RED) entered into a binding agreement to acquire King of the Hills gold mine from Saracen Metals Pty Ltd for AUD 28.5 million on August 3, 2017. Under the terms of agreement, Red 5 will pay AUD 7 million upfront cash and will issue 90 million shares escrowed for 12 months. Red 5 will also pay AUD 4.5 million in cash or issue shares in lieu of the cash payment at Saracen’s election, 12 months after completion. In the event that receiving all of the deferred consideration in shares would result in Saracen’s shareholding in Red 5 increasing to more than 15%, the number of shares issued to Saracen shall be reduced such that Saracen’s shareholding does not exceed 15%, and the difference between the value of the shares issued to Saracen and AUD 4.5 million shall be settled through a cash payment from Red 5 to Saracen. As part of the transaction, Red 5 will assume rehabilitation and environmental liabilities on the King of the Hills project estimated at AUD 14 million. Red 5 intends for the initial cash component will be from existing cash resources and to undertake a rights issue of AUD 12.7 million to fund the transaction. In a related transaction, Red 5 Limited signed a binding agreement to acquire Darlot gold mine from Gold Fields Limited for AUD 30.8 million on August 3, 2017. The transaction is subject to Red 5's shareholders’ approval, ministerial consent to the transfer of the mining tenements, royalty holder consent, Red 5 guarantor receiving Foreign Investment Review Board approval (if required) and third party approvals and consents. As of September 20, 2017, the transaction has been approved by shareholders of Red 5 Limited. Completion of the transaction is anticipated by September 30, 2017. As on August 17, 2017, the transaction is expect to complete on October 2, 2017. PCF Capital Group Pty Ltd acted as financial advisor for Saracen Mineral Holdings Limited. Paul Armstrong and Nicholas Read of Read Corporate acted as public relations advisors in the transaction. Red 5 Limited (ASX:RED) completed the acquisition of King of the Hills gold mine from Saracen Metals Pty Ltd on October 2, 2017.