De Grey Mining has launched a substantial $600 million fully underwritten equity raising initiative, set to fully fund the equity component of its ambitious Hemi gold project in the Pilbara. This funding effort is bolstered by an additional $313 million already available in cash reserves. The company has indicated that the equity funding is now secured and anticipates receiving credit-approved term sheets from debt financiers by mid-2024, supporting an aggregate $1 billion in debt funding along with a customary cost over-run facility.
The funds from this equity raise will cover the estimated capital costs of $1.345 billion for the Hemi project, plus a significant liquidity buffer, ensuring thorough preparation and management of the capital works program. This includes the early ordering of long-lead items and the appointment of civil contractors for initial site works.
Construction is expected to start in the latter half of 2024, with De Grey targeting the commencement of gold production by the second half of 2026. Once operational, the Hemi project is expected to produce approximately 530,000 ounces of gold annually over its first decade, positioning De Grey as one of the top five gold producers in Australia.
Alongside the development of the Hemi project, De Grey will continue its efforts in growth and exploration, including greenfield exploration across the region. Managing Director Glenn Jardine expressed confidence in the project, highlighting the equity raising as a “landmark milestone and a key de-risking event for De Grey.”
The equity raise is divided into an institutional placement aiming to raise $344 million and a 1-for-7.95 entitlement offer expected to generate $256 million, priced at $1.10 per share—a 13% discount on the last closing share price. 
