De Grey completes major bookbuild

2nd October 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

De Grey completes major bookbuild

Photo by: Bloomberg

PERTH ( – ASX-listed De Grey Mining has completed the bookbuild for its A$300-million fully underwritten share placement.

The company last week announced the two-tranche placement to fund major work at its Hemi gold project, in Western Australia, as well as providing exploration capital and funds for general working purposes.

De Grey on Monday announced that it had received firm commitments for the placement of 285.7-million shares, at a price of A$1.05 each, with the placement price representing a 5.8% discount to the company’s last closing price, and a 12% discount to its five-day volume weighted average share price.

The first tranche of the share placement will consist of 234.2-million shares, raising A$246-million under De Grey’s existing placement capacity, while the second tranche of 51.44-million shares, to raise a further A$54-million, will be subject to shareholder approval at a meeting scheduled for November 9.

Major shareholder Gold Road has committed to subscribing for 59.67-million of the new share to increase its shareholding in De Grey to 19.99%. Some 49.43-million of Gold Road’s shares will be taken up under the first tranche of the share placement, with more than 10.2-million being subject to shareholder approval.

De Grey on Monday said that in addition to the placement, four of the company’s directors have also subscribed for new shares at a placement price of A$1.05 a share, raising an additional A$0.6-million in funds.

Shareholder approval for the director placement will also be sought on November 9.