WA miner De Grey Mining has received firm commitments from investors to raise more than $31m to further develop its Hemi discovery within the Mallina gold project near Port Hedland.
The company plans to execute a placement of about 111.4m shares at a price of 28c each, representing a 12.5pc discount to the last closing price.
Executive Chairman Simon Lill said De Grey has been flooded with offers for a capital raising or direct investment since announcing positive drilling results at Hemi, with assays from section A indicating a 30m wide gold zone.
The funds will be used to continue exploration activities across the Mallina, but with a specific focus on Hemi.
“This is an extremely strong validation as to the quality of De Grey’s Hemi discovery and the Mallina Gold Project,” Mr Lil said.
“We chose to proceed with the capital raising once we were comfortable with the level of interest and are now extremely pleased to advise that many of the world’s top funds in this sector have joined our register.”
The company expects the new shares to be settled today (April 30).
