- De Grey Mining (DEG) launches its $150 million equity raise in the form of a $130 million institutional placement and $20 million share purchase plan (SPP)
- Funds raised from the equity raising alongside existing cash will be used towards advancing the company’s expansive exploration initiatives
- The company plans to undertake a fully written placement of 130 million new shares to be offered at an issue price of $1
- Following its completion, the company will undertake its non-written SPP offering eligible shareholders the same opportunity to subscribe for up to $30,000 worth of shares
- Shares in De Grey close flat at $1.09
De Grey Mining (DEG) has launched its $150 million equity raise in the form of a $130 million institutional placement and $20 million share purchase plan (SPP).
Earlier today, the company announced it had entered into a trading halt in order to finalise the details of this raise.
Funds raised from the equity raising alongside existing cash will be used towards advancing the company’s expansive exploration initiatives.
Further, it will be used to fully fund the definitive feasibility study in respent of Hemi and take the company through to a final investment decision (FID).
The company plans to undertake a fully written placement of 130 million new shares to be offered at an issue price of $1, which is an 8.3 per cent discount from the last closing price on October 4.
Managing Director Glenn Jardine said the equity raising allows the company to maintain its timing to complete its DFS.
“The equity raising provides funding certainty through to a FID whilst enabling De Grey to continue to undertake value accretive exploration activities,” he said.
“We believe these additional funds will drive long term shareholder value.”
The placement is fully underwritten by Canaccord Genuity (Australia) and Argonaut.
Following its completion, the company will undertake its non-written SPP offering eligible shareholders the same opportunity to subscribe for up to $30,000 worth of shares which will be priced the same as the placement.
The company expects to settle new shares under the placement on October 12, with allotment on October 13.
The SPP is tentatively scheduled to close on November 4, with allotment and issue of new shares set on November 10.
The raise also follows the release of the company’s preliminary feasibility study (PFS) for Mallina which outlined substantial improvement in project economic.
Shares in De Grey closed flat at $1.09.