De Grey Mining Completes AU$300 Million Placement

Firm Commitments for AU$300 Million Placement De Grey Mining Limited (ASX: DEG) has successfully completed a fully underwritten two-tranche placement, securing firm commitments for approximately 285.7 million new fully paid ordinary shares at a price of AU$1.05 per share, raising AU$300 million before costs.

Discounted Pricing

The placement pricing represents a 5.8% discount to the last closing share price and a 12.0% discount to the 5-day VWAP, demonstrating strong investor interest.

Support from Major Shareholder

Gold Road Resources Limited, a major shareholder of De Grey, has committed to subscribe for 19.9% of Tranche 2, increasing its shareholding in the company.

Utilization of Proceeds

The proceeds, combined with existing cash, will be utilized for several purposes:

• Finalizing detailed engineering and refining the contracting strategy for the Hemi Gold Project.
• Ordering long-lead major equipment items in preparation for construction activities.
• Early works, where approvals allow, ahead of Final Investment Decision (FID).
• Continued exploration drilling in the Greater Hemi and regional areas.
• General working capital needs and placement costs.

Strengthening the Balance Sheet

The placement will provide De Grey with significant balance sheet strength, supporting the advancement of project activities and de-risking future development.

Project Financing Timeline

The company aims to complete the project financing process by mid-2024, preceding the Final Investment Decision.

Trading Resumes

De Grey will resume trading on the ASX on October 2, 2023. The settlement of New Shares under Tranche 1 is expected on October 5, 2023, with trading commencing on October 6, 2023.

Key Partners

Canaccord Genuity (Australia) Limited, Argonaut Securities Pty Limited, and Argonaut PCF Limited played crucial roles as Global Coordinator, Joint Lead Manager, Joint Underwriter, Joint Bookrunner, and Corporate Adviser to the Placement, respectively. Legal advisory was provided by Gilbert + Tobin.

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