THE BOURSE WHISPERER: De Grey Mining (ASX: DEG) showed everybody how it’s done by announcing a raising of $31.2 million.
De Grey Mining made the announcement on the back of firm commitments received for the placement of approximately 111.4 million shares at a price of 28 cents per share to sophisticated, professional and other exempt investor clients of Bell Potter Securities Limited and Argonaut Securities Pty Ltd.
The company indicated it intends using the funds raised to continue exploration activities across the Mallina gold project, with a priority of work associated with determining the scale of the recently-discovered Hemi deposit, as well as for ongoing administration and corporate costs.
De Grey currently has two diamond rigs and one RC rig in operation at Hemi.
The new funds will allow resource drilling to continue at Hemi and also the recommencement of regional drilling programs targeting the other four intrusion targets at Scooby, Antwerp, Alectroenas and Shaggy.
Since announcing the Hemi discovery on 6 February this year, the company has been flooded with offers to assist in a capital raising or direct investment,” De Grey Mining executive chairman Simon Lill said in the company’s announcement to the Australian Securities Exchange.
“We recognised the opportunity to secure further funding and to build a strong register to assist with funding requirements into the future through the introduction of global blue chip gold only and resource funds.
“We chose to proceed with the Capital Raising once we were comfortable with the level of interest and are now extremely pleased to advise that many of the world’s top funds in this sector have joined our register.
“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina gold project and to that end I would like to congratulate and thank the technical and support staff who have been part of making this possible.
“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.
“We thank the brokers, Bell Potter and Argonaut, for their efforts with this important raising, as well the ongoing support of our major shareholder, DGO Gold Limited.
“De Grey is now well funded to continue its exploration programs into the foreseeable future.”