- De Grey Mining (DEG) has received firm commitments for a $5 million placement from sophisticated and professional investors
- Approximately 111.1 million shares will be issued at $0.045 each
- Under the placement, DGO Gold intends to contribute $500,000 of the $5 million however, this is subject to De Grey shareholder approval
- The funds will be used to continue exploration activities at the Mallina Gold Province
- De Grey is currently down 8.16 per cent with shares trading for 4.5 cents apiece
De Grey Mining (DEG) has received firm commitments for a $5 million placement to continue exploration activities at Mallina.
Approximately 111.1 million shares will be issued at $0.045 per share to sophisticated and professional investors.
Under this placement, DGO Gold intends to contribute $500,000 of the $5 million, however, this is subject to De Grey shareholder approval via an extraordinary general meeting (EGM).
De Grey will allot approximately 100 million shares on December 5, with the remaining 11.1 million allotted to DGO Gold post shareholder approval at the EGM.
Money raised will be used to continue exploration activities at Mallina, a key resource within the Mallina gold province.
Recent drilling has shown a series of wide, high-grade, shallow results with mineralisation now present over a greater than seven-kilometre strike length.
Incomplete shallow drilling will now undergo a more systematic and comprehensive program.
A current 10,000-metre reverse circulation (RC) and diamond drilling program is scheduled to be completed by mid-December with results being reported during January 2020.
A follow-up program is likely to begin in February 2020.
“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 beest greenfields gold projects in Australia,” Executive Chairman Simon Lill commented.
“We are pressing on to establish sufficient resources before considering development or other options. We thank our colleagues DGO Gold for their ongoing support of the Company and Project,” he added.
De Grey’s share price is currently down 8.16 per cent this morning with shares trading for 4.5 cents apiece at 11:23 am AEDT.