De Grey Mining (ASX:DEG) closes SPP, raises $18.7m

• De Grey Mining (DEG) accepts $18.7 million in funds as part of its recent share purchase plan (SPP) despite receiving more than enough applications to reach its $20 million target
• The company says of the 1700 applications, a “significant number” were from people who had an unremarkable shareholding
• Usingits right to scale back applicants with less than a marketable parcel to a maximum allocation of $500, De Grey will now issue over 18.7 million shares at $1 per share
• De Grey says it will use the money to complete a definitive feasibility study at its Mallina gold project and undertake resource definition drilling and technical studies
• Shares in De Grey close 2.41 per cent higher at $1.28

De Grey Mining (DEG) has accepted $18.7 million in funds as part of its recent share purchase plan (SPP) despite receiving more than enough applications to reach its $20 million target.

Earlier in the month, De Grey launched a $150 million equity raise consisting of a $130 million institutional placement and a $20 million SPP.

Under the SPP, eligible shareholders were able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.

However, DEG said of its 1700 SPP applications, many were from applicants who held an “unremarkable” shareholding, with a “significant number” from people who owned just one share in the company.

As such, the company used its right to scale back applicants with less than a marketable parcel to a maximum allocation of $500, and De Grey will now issue over 18,746,001 shares at $1 per share.

De Grey said it would use the money from the placement and SPP to complete a definitive feasibility study at its Mallina gold project and undertake resource definition drilling and technical studies at the project.

“We are pleased with the support of shareholders in response to the recent placement and SPP,” Managing Director Glenn Jardine said.

“This has provided the company with not only a strengthened financial position but a strong vote of confidence in our development strategy for the Mallina gold project.”

The SPP follows the placement, which raised $130 million through the issue of 130 million new shares to new and existing domestic investors and offshore specialist resource funds.

Shares in De Grey closed 2.41 per cent higher at $1.28.