The proceeds will help fund the company’s Hemi Gold Project
De Grey Mining Limited has initiated an equity raising of about $600m with the help of Gilbert + Tobin (G+T).
The fully underwritten equity raising includes a ~$344m institutional placement and a ~$256m pro-rata accelerated non-renounceable entitlement offer. The issue price came to $1.10 per share.
The proceeds from the raise are intended to fund the equity component of the project financing for De Grey's Hemi Gold Project in Pilbara in combination with current cash on hand. De Grey said in an ASX announcement that the equity funding solution “satisfies a key typical pre-condition of access to debt financing, with expected receipt of credit approved term sheets from debt financiers remaining on schedule for mid-2024”.
According to G+T, the transaction represents “a material de-risking milestone for the Hemi project development”.
Corporate advisory partner Sarah Turner and lawyer Ryan Gava led the firm’s team in working on this deal. They were supported by lawyers Dan Smailes and Sarah Urquhart.
Construction on the Hemi Gold Project is expected to begin in the second half of the year. Following a two-year construction timeline, first gold production is targeted for the second half of 2026.
