- De Grey Mining (DEG) has raised nearly $5 million from its biggest shareholder, DGO Gold
- The funds came from DGO’s exercise of two options, however, DGO is a year early to the deal
- De Grey says this shows the shareholder’s support and confidence in the company
- Funds raised will be used at the Hemi prospect at its Mallina Gold Project in Port Headland
- De Grey is up 7.69 per cent on the market this morning, trading at 21¢ per share
De Grey Mining (DEG) has raised $4.75 million from its biggest shareholder, DGO Gold.
The funds came from DGO’s exercise of two options. The first option, due by May 30, 2021, is 10 million options at 10¢ apiece. While the second option is 12.5 million options at 30¢ apiece due bu December 13, 2021.
Funds raised will be used on further activities at the new Hemi prospect.
De Grey says the early conversation of both series of the options and at a significant overall premium to the company’s current trading price, shows strong support from DGO.
The Hemi prospect is located at its Mallina Gold Project, approximately 60 kilometres south of Port Headland in Western Australia.
The company’s drilling programs are focused on the upgrade and expansion of known resources, as well as in the discovery of new deposits.
Just yesterday, the company reported its Hemi prospect is showing even more promising signs than first thought.
De Grey Executive Chairman Simon Lill is pleased with the ongoing support from the major shareholder.
“The early exercise of these options together with the early exercise premium on the $0.30 options, is a clear validation from DGO of their belief in De Grey’s Mallina Gold Project and, more specifically, the recent Hemi discovery, where drilling is continuing and we are seeking to further grow its size and scale,” he said.
De Grey is up 7.69 per cent on the market this morning, trading at 21¢ per share at 11:20 am AEDT.