De Grey Mining Limited (ASX: DEG, 'De Grey' or 'Company') is pleased to advise that the Company has received firm commitments for a placement of approximately 83.4 million shares ('Placement Shares') at a price of A$1.20 per share to raise A$100.0 million (before costs) ('Placement').
Argonaut Securities Pty Limited and Canaccord Genuity (Australia) Limited are acting as Joint Lead Managers and Bookrunners to the Placement. Bell Potter is acting as Co-Manager to the Placement. Azure Capital Pty Ltd is acting as corporate adviser to the Placement.
The Placement pricing represents a 16.4% discount to the last traded share price of $1.435 on 8 September 2020 and a 1.0% premium to the 10 day volume weighted average price.
Under the Placement
Major shareholder DGO Gold Limited (ASX: DGO) 'DGO' has committed to invest a further A$12.0M which will result in a holding of 15.8% at completion and Non-Executive Director Peter Hood has also committed to a further investment of A$360,000
Both DGO and Mr Hood's investments are subject to the approval of shareholders which will be sought at an Extraordinary General Meeting expected to be held in late October 2020. The commitment by DGO will lift its total investment in De Grey to $43 million since May 2018, including participation in every capital raising since its initial investment.
The Placement was strongly supported, with high levels of institutional participation that included many Australian funds and global precious metals and other specialist resource funds from the Northern Hemisphere. Coinciding with the Placement, Non-Executive Chairman Simon Lill, Executive Director Andrew Beckwith and CFO/Company Secretary Craig Nelmes have completed a partial selldown of their shareholdings, totalling 2.6 million shares, at the same price as the Placement. The partial selldown is being conducted for personal financial reasons including to fund the exercise of 2.5 million De Grey options.
Indices
Effective from 21 September 2020, the Company enters the S&P/ASX 300 Index. The Company has also been advised that it is to be included in the MVIS Junior Gold Miners Index (MVGDXJ). The inclusion of De Grey in both these indexes is a significant milestone in the company's continued growth and a clear indicator to our shareholders that our exploration strategies are on target.
Use of Funds
The Company currently has two diamond rigs, two RC rigs and one aircore rigs in operation at Hemi and a second aircore rig operating in the Greater Hemi area. The new funds will allow this extension and definition drilling to continue well into 2021. The Greater Hemi system remains open along strike and at depth, with multiple rigs currently testing extensional targets. As the recent discoveries of the Falcon zone and new lode within the Crow zone show, considerable scope exists in the immediate boundaries of the Hemi discovery to further grow and upgrade the mineralisation footprint.
The district scale opportunity at the Mallina Gold Project continues to be a significant focus for the company. Three of the four known intrusions within the area immediately surrounding Hemi contain gold mineralisation. In the coming months, we will allocate more drilling resources to fully test these areas. Beyond the Hemi and Greater Hemi area there are known intrusion and shear-hosted targets throughout our 150km long contiguous land position we have yet to even test, along with large areas which have had no first pass target generation work.
Contact:
Glenn Jardine
Tel: +61 8 6117 9328
Email: admin@degreymining.com.au
Forward Looking Statements Disclaimer
This announcement as prepared by De Grey Mining Limited (or the 'Company') include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'continue', and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control.
Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant securities exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
DE GREY MINING LIMITED 
