De Grey Mining Ltd has entered into an underwriting agreement with Taylor Collison Limited to underwrite 37.5 million listed options.
The options are exercisable at 10 cents an option, resulting in $3.75 million, and expire at the end of this month.
De Grey considers the agreement a prudent capital management measure that allows it to lock in and commit to its immediate and planned exploration and development initiatives.
Taylor Collison will earn a standard fee for the underwriting, a portion of which will be paid to various sub-underwriters who supported Taylor Collison.
De Grey expects to announce the number of shares to be issued as a result of the underwriting on or around December 7, 2018.
The company recently acquired Chinese-owned Indee Gold Pty Ltd, enabling it to bring its interest in the Pilbara Gold Project to 100%.
Earlier this month, De Grey received initial positive results from trial bulk sampling at Loudens Patch within the Pilbara Gold Project.
Additionally, De Grey’s recent drilling program successfully intersected high-grade underground lodes below the Withnell proposed open pit.