PERTH (miningweekly.com) – ASX-listed De Grey Mining will raise A$5-million in a share placement to sophisticated and professional investors.
The company on Friday said that it would place 111.1-million shares, at 4.5c each, under its existing placement capacity.
Capital raised will go towards funding exploration work at the Mallina project, where a current 10 000 m reverse circulation and diamond drilling programme is scheduled for completion in mid-December.
A follow-up drilling programme is likely to start in February next year.
“In a perfect world, every capital raise would be higher than the previous. We have, however, experienced a difficult period since the gold price highs in August and we have noted the declining share prices and fortunes of many of our peers in the sector,” said executive chairperson Simon Lill.
“The decision to raise additional capital now was difficult but ensures funding is secured and enables ongoing exploration activity at what we consider to be one of the best greenfields gold projects in Australia. We are pressing on to establish sufficient resource before considering developing other options.”