28/04/2020 - 11:06

De Grey to raise $31m

28/04/2020 - 11:06

Bookmark

Save articles for future reference.

Gold junior De Grey Mining is raising $31.2 million from a share placement to continue exploring its Mallina project in the Pilbara, with a focus on the recently announced Hemi discovery.

De Grey to raise $31m
De Grey will continue to explore its Mallina gold project in the Pilbara. Photo: De Grey Mining

Gold junior De Grey Mining is raising $31.2 million from a share placement to continue exploring its Mallina project in the Pilbara, with a focus on the recently announced Hemi discovery.

The company will use the funds to continue resource drilling at the Hemi deposit, where it has two diamond rigs and one reverse circulation rig currently in operation.

De Grey chairman Simon Lill said the company had been flooded with offers to assist in a capital raising since announcing the Hemi discovery in February.

He said commitments received for the placement validated the quality of the deposit and the Mallina gold project, located 80 kilometres south of Port Hedland.

“The recent Hemi discovery also highlights the outstanding exploration potential De Grey has across our tenements, with the market also now giving recognition to our existing 2.2 million ounces of resources,” Mr Lill told the market.

The company announced in April a 29 per cent increase in overall mineral resources at the Mallina Gold project, excluding the Hemi discovery.

Proceeds from the placement will also go towards the restart of regional drilling programs at four other intrusion targets as well as administration and corporate costs, De Grey said.

The company will issue around 111.4 million shares at 28 cents per share, with Bell Potter Securities and Argonaut acting as joint lead managers and Azure Capital as corporate adviser.

Queensland-based DGO Gold will maintain a 16.4 per cent interest in De Grey with a $5.1 million contribution to the placement, on top of the $5.35 million in funding contributed in late 2019.

De Grey shares were up 10.9 per cent at 12:05pm AEST to trade at 36 cents.


STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options