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De Grey Mining completes Indee acquisition, drilling ramps up

Drilling commenced early August and all results remain pending, strong news flow is expected over coming months.

De Grey Mining Ltd - De Grey Mining completes Indee acquisition, drilling ramps up
The next phase of exploration is funded with three drill rigs now operating

De Grey Mining Ltd (ASX:DEG) has completed the acquisition of Indee Gold Pty Ltd after successfully making the final payment.

Drilling programs that commenced in early August are now ramping up with three rigs actively operating on site at Toweranna, Withnell, Mallina and on new regional targets.

All results remain pending and a strong news flow is expected over the coming months.

De Grey aims to increase its 1.7 million ounce gold resource base in the Pilbara region up to 3.0 million ounces.

Completion of a major milestone for De Grey

De Grey’s executive chairman Simon Lill said: “Today is a major milestone for De Grey and an extremely pleasing conclusion to a process that we commenced in February 2017 where, with a market capitalisation of ~ $3.5 million, we reached agreement with our Chinese partners and friends to acquire Indee Gold Pty Ltd for $15 million.

“Since this time, we have rapidly grown the overall project resources to 1.7 million ounces and can clearly see significantly more ounces on the horizon.

“We now have 100% control of one of the best underexplored new gold provinces in Australia.

“We are fully funded to continue our focus on growing resources at our five large and under drilled resource areas, Toweranna, Withnell, Mallina, Mt Berghaus, and Wingina and we are also embarking on regional drilling for the first time in the search for new discoveries along our 200 kilometres of highly prospective shear zones and new intrusion targets.”

$22 million recently raised to complete acquisition

De Grey recently had major shareholder DGO Gold Ltd (ASX:DGO) increase its holding to 100.8 million shares from 25 million shares.

The shareholding is a result of the recent $22 million capital raising and means DGO Gold will hold 11.6% of the company.

These funds played a pivotal role in completing the Indee acquisition with the remainder being put towards exploration underway.

Quick facts: De Grey Mining Ltd

Price: 0.057 AUD

ASX:DEG
Market: ASX
Market Cap: $53.5 m
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De Grey Mining 'adding to resource base in next 6 months' in the Pilbara

De Grey Mining (ASX: DEG) chairman Simon Lill speaks to Proactive Investors about exploration and development works, and the company's growing gold reserves and resources, in the Pilbara region of Western Australia. Lill also updates on the acquisition of of Indee Gold Pty Ltd.

on 28/2/19

2 min read