Gold Road Resources Limited (ASX: GOR) has committed to subscribe to the two-tranche institutional placement by De Grey Mining Limited (ASX: DEG) at $1.05 per share, as announced by De Grey today.
In total, Gold Road is subscribing for:
- 49,438,097 new shares under Tranche 1 of the placement; and
- such number of new shares representing 19.9% of the new shares offered pursuant to Tranche 2 of the placement.
This investment returns Gold Road’s relevant interest in the issued capital of De Grey to 19.9% (initially disclosed on 19 August 2022).
De Grey announced today the launch of a fully underwritten, two-tranche placement to raise $300 million at a price of $1.05 per new share, representing a discount of 5.8% to the last closing share price and a 12% discount to the five-day VWAP.
De Grey will apply proceeds from the placement to activities including finalising detailed engineering of the Hemi gold project, ordering long-lead major equipment items ahead of planned construction activities, early works ahead of FID and continued exploration drilling.
