- Gold explorer De Grey Mining (DEG) receives firm commitments to raise $125 million for its Mallina Gold Project
- The company is issuing around 113 million shares at $1.10 per share, a nine per cent discount to the last traded share price
- Proceeds from the placement will be used to be complete a pre-feasibility study for the Mallina gold project in WA as well as drilling at the Hemi deposit
- Company shares commenced trading today and are down 8.26 per cent at $1.11 per share
De Grey Mining (DEG) has received firm commitments to raise $125 million for its Mallina Gold Project.
Earlier this week, the gold miner announced the placement which would issue around 113.6 million shares at $1.10 per share.
The placement price represents a nine per cent discount to the last traded share price.
Proceeds from the placement will be used for the Mallina gold project in Western Australia. Specifically, the company will complete a pre-feasibility study, drilling at the Hemi and Regional deposits as well as other exploration activities.
The placement saw strong demand from domestic and offshore institutions.
Earlier this week, Managing Director Glenn Jardine commented on the placement.
“The placement provides De Grey with a significant capital runway to undertake exploration activities to expand the existing resource, and progress project development studies,” he said.
“De Grey will now have a significantly strengthened balance sheet which provides a strong platform to unlock further value at Mallina.”
Company shares commenced trading today and were down 8.26 per cent at $1.11 per share at 11:21 am AEDT.