DGO Gold to in­vest $5m in Pil­bara’s De Grey Min­ing

Pilbara News - - News - Stu­art McK­in­non

Ed Eshuys’ DGO Gold will pay a pre­mium to take up to a 10 per cent stake in fel­low Pil­bara con­glom­er­ate gold play De Grey Min­ing.

DGO an­nounced last week it would in­vest $5 mil­lion in the Si­mon Lill-led ex­plorer at 20¢, giv­ing it an ini­tial 7 per cent stake.

A one-for-two op­tion is­sue will po­ten­tially boost its stake to 10 per cent.

The 20¢ price rep­re­sents a near 18 per cent pre­mium to De Grey’s last traded price of 17¢ last Mon­day be­fore the deal was an­nounced.

DGO said it would fund the in­vest­ment via a one-for-two rights is­sue priced from 70¢-80¢.

Five ma­jor share and op­tion hold­ers have com­mit­ted to the rais­ing.

It de­scribed De Grey as one of the best-po­si­tioned gold ex­plor­ers in WA, with 1.2 mil­lion ounces of gold re­sources de­lin­eated across its Pil­bara ten­e­ments with the po­ten­tial for re­source ex­ten­sions as well as its con­glom­er­ate gold prospects.

De Grey said its drilling con­trac­tor, Top Drill, would also sub­scribe for $1 mil­lion in shares and noted it stood to re­ceive an­other $6 mil­lion from the ex­er­cise of 10¢ op­tions ex­pir­ing at the end of Novem­ber.

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