De Grey raises $3.3m through placement

Jolimont-based precious and base metals explorer De Grey Mining Ltd has raised $3.3 million for working capital through a placement, ahead of further exploration at its Turner River project.

The full text of a company announcement is pasted below

De Grey is pleased to announce the completion of a placement of 26.8 million new shares at an issue price of 12.5 cents to sophisticated and professional investors adding $3.35 million (less costs) to the Company's working capital position.

The issue will allow De Grey to enter the next phase of activity at the company's 1,200 square kilometre Turner River Project where De Grey has recently been successful with the discovery of a new Volcanogenic Massive Sulphide belt. De Grey has access to over 75 kilometres of rocks prospective for VMS mineralisation and has already identified a number of prospects containing zinc, silver, lead and gold mineralisation.

The capital raised is primarily intended to:

continue De Grey's intensive drilling and exploration programs at the company's Turner River project and

dependent on results from metallurgical testwork and further exploration drilling partially fund resource drilling at least one base metal prospect during 2007

Application for official quotation of the new shares on the ASX will follow allotment before the 23rd February 2007.