De Grey Mining has successfully raised $514.3 million under the $600 million fully underwritten institutional placement and the institutional entitlement offer it announced last week.
The $514.3 million comprised over 312 million new shares under the placement and over 155 million new shares under the institutional entitlement offer.
The equity raising was conducted at a fixed price of $1.10 per share, which came in at a 13 per cent discount to De Grey’s last closing price of $1.265 per share on May 7.
The proceeds, together with existing cash, are expected to fully fund the equity component of the Hemi gold project financing, as well as fund costs like construction and exploration.
Gold Road Resources – De Grey’s largest shareholder – is committed to taking up all of its entitlements under the entitlement offer by subscribing for over 46 million new shares, which came to about $50.9 million in value.
“The support from existing and new shareholders for the institutional component of the equity raising has been overwhelming and reflects the high quality of the Hemi gold project at a global level,” De Grey Mining managing director Glenn Jardine said.
“I would also like to extend my appreciation to the De Grey board and management, the joint lead managers and our legal and financial advisors for their considerable efforts in successfully executing this landmark transaction.
“Our focus remains on completing the project financing and implementing the project execution plan as we move towards the start of the construction phase.”
De Grey said the fully underwritten retail component of the entitlement offer is expected to raise a further approximately $85.6 million for the Hemi project through the issue of about 77.8 million new shares.
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