Gold Road has returned to 19.9 per cent shareholding in De Grey Mining after subscribing in the two tranche institutional placement by De Grey at $1.05 per share.
De Grey announced the launch of a fully underwritten two tranche placement to raise $300 million on September 28, with proceeds allocated toward various mining activities.
These activities include the finalisation of detailed engineering, refining the contracting strategy and continuing exploration drilling across both the Greater Hemi gold project and regional areas in WA.
According to De Grey, the placement will provide the company with significant balance sheet strength and flexibility to progress activities to support the Hemi project execution schedule.
“Delivery of the Hemi DFS (definitive feasibility study) is a major milestone for the company and sets a solid foundation from which the company can proceed with confidence to the next stage of development of the Hemi gold project,” De Grey managing director Glenn Jardine said.
“This placement is instrumental to the company’s focus on de-risking further the construction through the above activities in support of an updated capital estimate, project funding and FID (final investment decision) in mid 2024.”
Gold Road has committed to 49,438,097 new shares under Tranche 1 of the placement and said it was pleased to return to 19.9 per cent shareholding.