I'll be back!
- 28 July 2004
DEG soaring on high volume today. Up an impressive 50% from yesterday's close, currently at 22.5c and looking very strong.
De Grey accepts strategic investor Kirkland Lake to its Register
De Grey Mining Limited (“De Grey”) is pleased to announce that Kirkland Lake Gold Ltd. (“Kirkland Lake”) has agreed to subscribe for up to 33,333,333 shares in De Grey at a price of $0.15 per share to raise $5M. Each share will have a free attaching option, with the options exercisable at $0.20 per share at any time before 30 November 2019.
Kirkland Lake is a Canadian listed mid-tier gold producer with a market capitalization of US$2.7Bn and forecast production for 2017 of 570,000 – 590,000 oz’s of gold. They have interests in Australia through the high grade, low cost Fosterville mine in Victoria and have recently invested $58M in De Grey’s Pilbara counterpart, Novo Resources Corp.
The share placement is subject to shareholder approval which the Company will seek at its Annual General Meeting (“AGM”) to be held before the end of November 2017 and Kirkland Lake staying below 19.9% on a partially diluted basis post De Grey’s AGM. An anti-dilution clause exists that allows Kirkland Lake to retain their equity position through future capital raisings. The anti-dilution clause is subject to ASX waiver of Listing Rule 6.18.
The funds will be used for ongoing exploration and development activities at the Pilbara Gold Project.