G+T advises WA gold explorer on $300m capital raise

Gilbert + Tobin (G+T) has advised ASX-listed WA gold explorer De Grey Mining Ltd on its $300m capital raise via a two tranche, fully underwritten placement.

The capital will be applied towards “[advancing] major project lead items, [continuing] exploration drilling access at Greater Hemi and regional areas, and funding working capital,” the firm said.

Under the placement, a total of 285 million shares will be issued by De Grey Mining in the two tranches, with the second tranche pending shareholder approval, according to Mining Technology. Current shareholder Gold Road Resources has entered an agreement to subscribe to over 49 million shares in the first tranche.

In the next tranche, Gold Road Resources is set to acquire enough shares to secure a 19.9% stake in De Grey.

The company initiated this placement in the wake of positive financial outcomes outlined in its definitive feasibility study for its flagship Hemi Gold Project in the Pilbara region. The study also provided “a strong platform for De Grey to transition from studies into development of a Tier 1 gold project.”   

G+T's team on the transaction was led by corporate advisory partner Sarah Turner. She was assisted by senior associate Callum Fleming and lawyer Sarah Urquhart.