De Grey Mining Ltd (ASX:DEG) has received firm commitments to raise up to $5 million through the issue of about 111.1 million shares at 4.5 cents per share to sophisticated and professional investors.
Funds raised will be issued to continue exploration activities at Mallina, a key resource within the Mallina gold province, which was previously known as the Pilbara gold province.
"Pressing on" to establish resources
Executive chairman Simon Lill said, “In a perfect world every capital raise would be higher than the previous.
“We have, however, experienced a difficult period since the gold price highs in August and we have noted the declining share prices and fortunes of many of our peers in the sector.
“The decision to raise additional capital now was difficult but ensures funding is secured and enables ongoing exploration activity at what we consider to be one of the best greenfields gold projects in Australia.
“We are pressing on to establish sufficient resources before considering development or other options and we thank our colleagues DGO Gold Limited for their ongoing support of the company and project.”
10,000-metre drill program
Recent drilling has shown a series of wide, high-grade and shallow results with mineralisation present over a greater than 7-kilometre strike length.
With incomplete shallow drilling to date over less than 3 kilometres of the system, the company plans a more systematic and comprehensive program.
A current 10,000-metre reverse circulation (RC) and diamond drilling program is scheduled to be completed by mid-December, with results expected in January 2020.
A follow-up program is likely to begin in February 2020.