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- De Grey Mining (DEG) has come out swinging after receiving an aware query from the ASX
- Aware queries are notices issued by the ASX asking the company if it is aware of any activity that may cause its share price to move dramatically
- The company responded to an Australian Financial Review article on April 16 saying it had made no decisions regarding a capital raise
- Then on April 23, it announced it would in fact have a capital raise, scheduled for the April 28
- De Grey Mining shares closed 1.43 per cent higher today, trading for 35.5 cents each
De Grey Mining (DEG) has issued a bullish response to an ASX aware query regarding share price movement, pointing to “blue-chip global resource and gold funds” that want a slice in the company.
Aware queries are notices issued by the ASX asking the company if it is aware of any activity that may cause its share price to move dramatically. DEG received the query on May 1s.
The move comes on the back of the ‘will they, won’t they’ back and forth that occurred at the end of April regarding De Grey’s decision to raise capital.
On April 16, the company rebutted the Financial Review for an article that spoke about DEG completing a capital raise with Bell Potter. In an announcement refuting the claims, De Grey said it “will at some stage require further capital. However, the company has not determined the mechanism, quantum, nor timing of any such raising and are not under any immediate pressure to raise.”
But in a sudden switcharoo, on April 23, the company announced it would have a share offering, slated for April 28.
That fundraise returned De Grey some $31 million, offering 110 million shares at a price of 28 cents a share.
The company wanted to raise the funds to explore the company’s Hemi deposit, an outstanding gold prospect in the Pilbara region of Western Australia. When the company initially announced the results from Hemi in February, its share price bounced as much as 50 per cent.
This apparent change of heart regarding the capital raise is what the ASX is attempting to get answers around. For its part, De Grey has stated the capital raise was decided after market close on April 22 and announced on April 23.
De Grey shares were trading around 25 cents at the start of April and holding steady there, then speculation regarding a share offering along with further pending assays from Hemi pushed the price as higher as 36.5 cents per share by the middle of the month.
In its response to the ASX, De Grey has stated that since the Hemi discovery was announced in February, the company has been offered capital raising opportunities on a regular basis.
Further to this, De Grey said “it was aware that there was significant interest in the company from Blue Chip global resource and gold funds, who would provide the register the company was trying to build.”
De Grey Mining shares closed 1.43 per cent higher today, trading for 35.5 cents each.
