- Gold Road Resources (GOR) is maintaining its 19.99 per cent interest in fellow gold-focused company De Grey Mining (DEG)
- Gold Road committed to subscribe for more than 25.98 million De Grey shares under the $130 million placement to maintain its interest
- De grey announced the $150 million capital raising yesterday which includes a $130 million placement and $20 million share purchase plan
- In mid-August, Gold Road Resources increased its interest in De Grey from 14.45 per cent to 19.99 per cent
- Gold Road Resources is up 1.08 per cent and trading at $1.40 per share at 2:49 pm AEDT
Gold Road Resources (GOR) has subscribed for 19.99 per cent of De Grey Mining’s (DEG) $130 million placement.
The company has received 25,987,000 shares in De Grey at $1 each to maintain its 19.99 per cent interest in the WA gold explorer.
Yesterday, De Grey launched a $150 million equity raising consisting of a $130 million placement and a $20 million share purchase plan.
Under the placement, 130 million new shares will be issued to participants at $1 per share.
The share purchase plan will allow eligible shareholders to subscribe for up to $30,000 worth of shares at the same price as the placement.
De Grey said it would use the money to complete the definitive feasibility study at the Mallina gold project, and undertake resource definition, discovery and extension drilling.
In mid-August, Gold Road Resources increased its interest in De Grey from 14.45 per cent to 19.99 per cent.
At the time, GOR said it does not intend to make a takeover bid or other offer for De Grey but reserves the rights to do so and to make further investments at any time.
Gold Road Resources was up 1.08 per cent on the market and trading at $1.40 per share at 2:49 pm AEDT.