De Grey Mining raising $300m, definitive feasibility study out
afr.comGold developer De Grey Mining was preparing a $300 million equity raising on Thursday morning to coincide with the release of a definitive feasibility study for its flagship Hemi resource.
De Grey Mining’s Hemi site in Pilbara.
The placement was priced at $1.05 a share, a tight 5.8 per cent discount to the $1.115 last traded price and 12 per cent lower than the volume weighted average price.
It was split into two tranches, with the second leg – worth $54 million – being subject to shareholder approval. The raise was underwritten.
Potential investors were told De Grey would use the proceeds to advance project implementation, further exploration at its tenement package, and fund working capital.
De Grey’s largest shareholder, ASX-listed miner Gold Road Resources, which owns 19.99 percent of the company has committed to tipping in enough to avoid dilution.
Argonaut and Canaccord Genuity were mandated as joint lead managers. They called for bids by 4pm Thursday for Asia Pacific investors, and 6am Friday for rest of the world.
De Grey discovered Hemi four years ago. Its pre-feasibility study told investors they could expect the product to produce 540,000 ounces a year for the first 10 years.
The raise was well expected by fund managers, given De Grey’s guidance of publishing its definitive feasibility study by September end.
