De Grey directors up their skin in the game by exercising options; raises $3.8m
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Special report: De Grey Mining has now received in ~$6 million from the exercise of listed and unlisted options expiring at end of November 2018, with only a small shortfall ($3.346 million) of the listed class options left for take-up by the underwriter Taylor Collinson Limited.
The De Grey directors demonstrated their confidence in the company’s large Pilbara gold project by exercising their listed and unlisted options.
Executive chairman Simon Lill and directors Andy Beckwith and Steve Morris collectively contributed ~$500,000 of the total, with a further ~$225,000 contributed by other management and employees.
All options were exercisable at 10c each and De Grey’s share price on the November 30 deadline was 13c – representing a 30 per cent premium to the option price.
Executive Chairman Mr Simon Lill commented that:
“The Board is pleased to have further strengthened the Company’s cash position through the successful exercise of the options and would like to thank its loyal shareholder base for their continued support. The support of my fellow directors, management and employees is further validation of De Grey’s Pilbara Gold Project.”
De Grey plans to use the additional cash to fund its continued push to grow its 1.4-million-ounce resource at its Pilbara gold project, with a stated corporate target of +3m ounces.
In early November, drilling delivered more high grades of up to 5.12 grams per tonne (g/t) from two lodes below the proposed “Withnell” open pit.
At Withnell Technical Director Andy Beckwith has signed off on an exploration target of an additional 2.6 to 3.5 million tonnes at 4 to 6.5g/t for 330,000 to 720,000 ounces of gold.
All deposits remain open and so far. Only about 10 per cent of the shear zones have received any form of drilling, most of which is no deeper than 150m.
The Pilbara project has a large pipeline of targets, including more than 40 identified and as yet untested soil anomalies along the highly prospective regional scale shear zones and the newly discovered conglomerate-gold style of mineralisation.
Conglomerate gold refers to nuggets hosted in rock containing rounded grey quartz pebbles and other minerals. The world’s most productive gold region, South Africa’s Witwatersrand Basin, is famous for its similar geological formation.
Drilling is continuing, whilst the company is also working on an initial open pit pre-feasibility study.