De Grey Mining's (ASX:DEG) ambitious plans for a company-changing $300 million capital raising have been successful, with the would-be gold miner revealing that it had secured commitments for the full amount (before costs).
In a filing with the ASX on a holiday Monday in many states, De Grey stated that it had received firm commitments for a fully underwritten two-tranche placement of approximately 285.7 million new fully paid ordinary shares at $1.05 per share.
"The Placement was strongly supported, with high levels of institutional participation that included leading global investor groups both domestically and offshore," the company told the ASX.
Gold Road Resources has committed to maintaining its 19.9% stake in De Grey by taking 49.438 million shares under the first tranche and 10.237 million under the second tranche (which will require shareholder approval at a meeting on November 9).
De Grey intends to use the proceeds to begin ordering equipment and services for the $1 billion-plus Hemi open-cut gold mine at its Mallina prospect in the Pilbara region of WA. This new funding will facilitate the necessary work as the company progresses toward a final investment decision in mid-2024.
Tranche 1 of the issue will raise approximately $246.0 million, and the second tranche will raise around $54.0 million after the shareholders' meeting next month.
De Grey also mentioned that its "directors have subscribed to an aggregate of 619,055 New Shares at the Placement price, subject to shareholder approval, which would raise an additional $0.6 million."
Trading in De Grey shares resumed on Monday.
