PERTH (miningweekly.com) – ASX-listed De Grey Mining has launched a A$150-million placement and share purchase plan (SPP) to fund definitive feasibility study (DFS) work and drilling at the Mallina gold project, in Western Australia.
De Grey on Wednesday announced a fully underwritten share placement consisting of 130-million new shares, at a price of A$1 each. The shares will be placed under the company’s existing placement capacity, and will not require shareholder approval.
Following the completion of the share placement, De Grey will undertake an SPP targeting a further A$20-million capital raise.
Under the SPP, eligible shareholders will be able to subscribe for up to A$30 000 of additional shares, also at a price of A$1 each. The SPP, which is not underwritten, is expected to open on October 17 and close on November 4.
The A$1-a-share offer price represents an 8.3% discount to De Grey’s last closing price on October 4 and a 3.3% discount to the company’s five-day volume weighted average price.
De Grey told shareholders that the proceeds from the raising, along with existing cash, would be used to complete the DFS for the Mallina project, in preparation for a final investment decision (FID), as well as funding resource definition drilling and technical studies to increase reserves.
Discovery and extensional drilling will also be undertaken, along with pre-development activities.
"The placement announced along with the accompanying SPP allows the company to maintain its timing to complete its DFS. The equity raising provides funding certainty through to a FID whilst enabling De Grey to continue to undertake value accretive exploration activities. We believe these additional funds will drive long term shareholder value,” said De Grey MD Glenn Jardine.