De Grey Mining, an Australian gold mining company, has unveiled a significant equity raise amounting to A$600 million ($395.34 million) on Wednesday. This strategic move is aimed at fulfilling a crucial precondition necessary to secure debt financing for its ambitious Hemi project situated in Western Australia.
According to a filing with the exchange, the equity raise will involve the issuance of 545.5 million shares by De Grey Mining. The breakdown comprises a substantial institutional placement totaling A$344 million alongside a pro-rata accelerated non-renounceable entitlement offer of A$256 million, structured at 1 for 7.95.
The placement’s offering price of A$1.10 denotes a 15% discount from the stock’s most recent closing price of A$1.27 recorded on May 7.
De Grey emphasized the proactive nature of finalizing the equity aspect of the Hemi project’s financing, noting its pivotal role in streamlining planning and management processes. This includes the expedited procurement of long-lead items and the appointment of contractors, as outlined in their official statement.
The mining company is gearing up for full-scale construction activities at the Hemi gold project slated to commence in the latter half of 2024. With construction anticipated to conclude by the second half of 2026, De Grey is eyeing the commencement of gold production at the mine during this period.
($1 = 1.5177 Australian dollars)
Conclusion
In conclusion, De Grey Mining’s successful equity raise of A$600 million marks a significant milestone in advancing its Hemi project. With this crucial financing secured, the company is poised to accelerate its construction timeline and move closer to gold production, underscoring its commitment to growth and development in the Australian mining sector.