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DGO Gold (ASX:DGO) to raise $28.5M, invests in De Grey
  • DGO Gold (DGO) has received firmed commitments to undertake a $28.5 million share placement
  • Shares will be priced at $3.45 which represents a 9.1 per cent discount to the 10-day volume-weighted average price
  • Of the $28.5 million, DGO Gold will invest $12 million into De Grey Mining's (DEG) recently announced share placement to secure a 15.8 per cent holding
  • Furthermore, up to $8 million will be allocated to ongoing field exploration and $2 million will be set aside for investment in Yilgarn Exploration Venture
  • DGO Gold has ended the day 7.73 per cent in the green with shares trading for $3.90 each

DGO Gold (DGO) has received firmed commitments to undertake a $28.5 million share placement.

Shares will be priced at $3.45 which represents a 4.7 per cent discount to the last closing price of $3.62, and a 9.1 per cent discount to the 10-day volume-weighted average price.

Of the $28.5 million, DGO Gold will invest $12 million into De Grey Mining's (DEG) recently announced share placement to secure a 15.8 per cent holding.

DGO Gold has participated in every one of De Grey's capital raises since its initial investment, having invested $43 million since May 2018.

Furthermore, up to $8 million will be allocated to ongoing field exploration and $2 million will be set aside for investment in Yilgarn Exploration Venture.

"We are encouraged by the strong support for this raising. Existing holders and new investors have endorsed our greenfield and brownfield exploration strategy as well as the proposed follow-on investment of $12 million in De Grey shares," Executive Chairman Eduard Eshuys said.

"Across our investee companies and our own tenements over the next six months, DGO will have between eight to 12 drill rigs operating on a consistent basis," he added.

DGO Gold has ended the day 7.73 per cent in the green with shares trading for $3.90 each in a $222.7 million market cap.


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