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ED ESHUYS is to move onto the board of De Grey Mining following the potential A$5 million backing by his DGO Gold of De Grey’s $22 million fundraising plan.

18 July 2019 | Michael Quinn

DGO was a 6% shareholder in De Grey, with Canadian company Kirkland Lake the biggest shareholder with 9%.

It could now end up with 14-15% of De Grey if its’ sub-underwriting of the entitlement issue is fully called upon.

De Grey is set to more than double its capital structure with the raising that’s pricing new shares at 5c each – a 40% discount to recent trading levels.

The proceeds are to be principally used to complete the acquisition of the Indee project from Northwest Nonferrous Australia Mining.

De Grey announced it was acquiring the project in February 2017 for $15 million in cash and shares, with the final settlement comprising $9.7 million cash and $3 million worth of shares.

De Grey has outlined a total 1.7 million ounces across various deposits at the project, and has a corporate target to reach 3Moz.

Exploration and feasibility work is set to continue through the year.

The experienced Eshuys will be joined on the De Grey board with another DGO director, Bruce Parncutt.

Shares in De Grey were down 29% to 6.7c in afternoon trade, capitalising the company at $28.5 million.

The stock is down from levels around 20c 12 months ago.

https://www.miningnews.net/capital-markets/news/1367649/eshuys’-dgo-backing-big-de-grey-fund-raising