De Grey Mining celebrates an $18.7m show of investor confidence, fast-tracking DFS completion at Mallina Gold Project
DeGrey has secured a massive $18.7 million war chest, after wrapping up a share purchase plan that received 1,700 applications from eligible shareholders in excess of $20mn.
Of that total, applications totalling $18.7mn have been accepted with the corresponding number of shares set for issue on November 11 and to be quoted by November 14.
This follows the $130mn raised through a fully, underwritten institutional placement back in October which garnered strong investor support from the likes of Gold Road Resources (ASX:GOR), who committed to subscribe for their pro-rata interest.
De Grey Mining (ASX:DEG) says funds from both the placement and the SPP will enable it to advance its expansive exploration activities to grow the resource endowment at the Mallina Gold Project.
It will also ensure the explorer is fully funded to complete its Hemi definitive feasibility study, scheduled for completion in Q2, 2023.
The funds will also provide De Grey with significant balance-sheet strength and flexibility during the company’s project financing phase.
De Grey managing director Glen Jardine says the company is pleased with the support of shareholders in response to both the placement and SPP.
“This has provided us with not only a strengthened financial position, but a strong vote of confidence in our development strategy for the Mallina Gold Project.
Funds from both the SPP and placement, together with existing cash, will be used to complete the Mallina Gold Project DFS, wrap up resource definition drilling and technical studies to increase project reserves, conduct discovery drilling and target new discoveries, as well as undertake pre-development activities.
This article was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.