De Grey in $6m raising

De Grey Mining has raised $6 million, with ASX-listed DGO Gold investing $5 million in the placement, to expand exploration work at the company’s Pilbara gold project.

Mt Hawthorn-based De Grey issued 25 million shares to DGO at 20 cents each, which also includes 12.5 million options exercisable at 25 cents and 12.5 million at 30 cents.

The company will also issue up to $1 million in shares to Top Drill, who are conducting a drilling program at the Pilbara project.

This will be achieved through the conversion of 30 per cent of Top Drill’s drilling costs into equity, with the issue price to be determined by a five-day volume-weighted average price immediately preceding each invoice.

De Grey chairman Simon Lill said the company was pleased to have the endorsement of DGO.

“DGO is backed by significant gold investors and led by the well credentialled geologist, Ed Eshuys,” he said

“Recent excitement in the region has been about conglomerate gold.

“However, DGO have been attracted to our significant and underexplored mineralised shear zones. De Grey will utilise funds raised to expand its current exploration program across this region.

“We are also pleased with the ongoing support of our drilling contractor Top Drill.”

Shares in De Grey finished flat at 17 cents each.