De Grey sets sights on A$125m raising
PERTH (miningweekly.com) – Gold hopeful De Grey Mining will raise A$125-million in a fully underwritten share placement to fund exploration work and to complete a prefeasibility study on its Mallina gold project, in Western Australia.
The ASX-listed company on Wednesday announced that it would place 113.6-million shares at a price of A$1.10 each under its existing placement capacity.
The offer price represented a 9% discount to De Grey’s last closing price on October 19, and an 8% discount to the company’s 11-day volume weighted average share price.
The placement is fully underwritten by Canaccord Genuity and Argonaut PCF.
“De Grey is pleased to announce the launch of a fully underwritten placement, which displays a high level of investor support for our growth strategy at the globally significant Mallina gold project,” said De Grey MD Glenn Jardine.
“The placement provides De Grey with a significant capital runway to undertake exploration activities to expand the existing resource and progress project development studies. De Grey will now have a significantly strengthened balance sheet which provides a strong platform to unlock further value at Mallina.”
A recently completed scoping study at Mallina estimated that yearly gold production would reach some 473 000 oz/y for the first five years of operations, and some 427 000 t/y over the ten-year mine life.
Average all-in sustaining costs have been estimated at A$1 111/oz in the first five years, to some A$1 224/oz over the current ten-year evaluation period, placing Mallina in the lowest quartile of Australian gold producers.
The ten-million-tonne-a-year plant is expected to require a capital investment of some A$835-million, with the scoping study estimating a pre-tax net present value of A$2.8-billion and an internal rate of return of about 60%.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation