De Grey raises $600M to progress work at WA’s Hemi Gold Project

De Grey Mining Ltd (ASX:DEG) has raised more than A$85 million through a Retail Entitlement Offer which – combined with earlier capital-raising initiatives – has delivered the company a total of A$600 million to support financing of the Hemi Gold project in WA’s Pilbara.

The Offer was announced on May 8 and closed on May 27, and is set to raise $85.6 million, with new shares offered at A$1.10 each, and was the retail component of a 1 for 7.95 (pro-rata non-renounceable) entitlement offer which was also announced on May 8.

De Grey had already raised A$514.3 million through the institutional component of the Entitlement Offer, with the whole A$600 million to go towards different aspects of the Hemi project, including ordering of major equipment, engineering studies, construction of the site camp and airport facilities and exploration work.

As part of the Retail Entitlement Offer, applications were received for 39.1 million shares with the goal of raising A$43 million, and there was a shortfall of around 38.7 million shares representing approximately A$42.6 million, and these will be issued in accordance with the underwriting agreement.

The Hemi Gold Project – discovered in 2019 – contains a mineral estimate of 10.5 million ounces, and is expected to result in a low-cost open pit mining operation with a low strip ratio.

De Grey Mining was trading at $1.152 at 12:33 AEST, a rise of 2.44 percent since the market opened.