- West Australian mining company De Grey Mining (DEG) has received firm commitments from investors to raise over $31 million
- The company will issue around 111.4 million shares at a price of 28¢ each
- The majority of funds from the raise will go towards exploration activities, with a focus on determining the scale of De Grey’s Hemi deposit
- Executive Chairman Simon Lill said De Grey has been flooded with offers for a capital raising or direct investment since announcing the Hemi discovery
- According to De Grey’s placement schedule, the new shares will be settled on April 30
- On the market this morning, De Grey is up 4.69 per cent and is selling shares for 33.5¢ each
West Australian mining company De Grey Mining (DEG) has received firm commitments from investors to raise over $31 million to further develop its Hemi discovery.
The company plans to execute a placement of approximately 111.4 million shares at a price of 28 cents each, representing a 12.5 per cent discount to the last closing price.
That figure is also a 9.6 per cent discount against the 10-day volume-weighted asset price (VWAP) and a 10 per cent premium compared to the 30-day VWAP.
Executive Chairman Simon Lill said De Grey has been flooded with offers for a capital raising or direct investment since announcing the Hemi discovery in early February.
“We recognised the opportunity to secure further funding and to build a strong register to assist with funding requirements into the future through the introduction of global blue-chip gold only and resource funds,” Simon said.
“We chose to proceed with the capital raising once we were comfortable with the level of interest and are now extremely pleased to advise that many of the world’s top funds in this sector have joined our register,” he added.
The Hemi deposit is located at De Grey’s Mallina Gold Project, near Port Headland in Western Australia.
The funds will be used to continue exploration activities across the Mallina, but with a specific focus on Hemi.
“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina Gold Project, and to that end, I would like to congratulate and thank the technical and support staff who have been part of making this possible,” Simon told the market.
“The recent Hemi discovery also highlights the outstanding exploration potential De Grey has across our tenements, with the market also now giving recognition to our existing 2.2 million ounces of resources,” he added.
As a result, De Grey says it is now well funded to continue its future exploration programs.
According to the company’s placement schedule, the new shares will be settled on April 30.
On the market this morning, De Grey is up 4.69 per cent and is selling shares for 33.5¢ each at 10:02 am AEST.