- DGO Gold will increase its investments in De Grey Mining by participating in its current capital raising
- DGO hopes to play a more active role in De Grey’s Pilbara Gold Project as its gold resource has continually increased
- DGO Directors Eduard Eshuys and Bruce Parncutt AO will join the Board of De Grey
DGO Gold has entered into commitments with Bell Potter Securities to increase its investment in De Grey Mining.
DGO first invested in De Grey in July 2018. The company wanted to gain exposure to De Grey’s highly prospective gold exploration position in the Pilbara.
Since DGO’s initial investment, De Grey’s drilling results have exceeded DGO’s expectations. At the time of investment, the Pilbara Gold Project had a gold resource of 1.2 million ounces which has increased to 1.7 million ounces.
De Grey is currently undergoing a capital raising via a placement of 60 million shares at 5 cents per share and a renounceable entitlements issue of approximately 380 million shares at 5 cents per share.
DGO currently holds 25 million shares in De Grey, representing approximately 5.9 per cent of De Grey’s issued capital before capital raising.
The company will subscribe for 6 million shares in the placement at 5 cents per share and has committed to taking up its full entitlement in the new issue being approximately 24 million shares at 5 cents per share.
DGO has also agreed to sub-underwrite the De Grey entitlements issue to the extent of 70 million shares at 5 cents per share.
Upon the placement’s completion, DGO Gold can nominate two directors to the Board of De Grey as two directors at De Grey are retiring. DGO Gold plan to appoint Eduard Eshuys and Bruce Parncutt AO to fill these positions
DGO looks forward to being more active in the next phase of De Grey’s resource discovery strategy.