De Grey Mining (ASX:DEG) attracts Mallina funding proposals from 14 potential lenders


  • De Grey Mining (DEG) receives non-binding proposals from 14 potential lenders for the financing of its Mallina gold project in Western Australia
  • Most of the institutions have indicated the project supports a traditional debt funding capacity of approximately $800 million
  • Chief Financial Officer Peter Canterbury says many of the proposals come from “highly regarded” financial institutions with significant mining sector experience
  • The financing process is expected to wrap up in the second half of 2023 and will be supported by an independent technical consultant and a definitive feasibility study
  • Shares in De Grey Mining last traded at $1.42 on Wednesday, February 8

De Grey Mining (DEG) has the pick of the litter when it comes to financing the development of its flagship Mallina project in WA, with 14 lenders offering the proposed cash.

The company on Thursday morning said it had received non-binding proposals from 14 leading banks and financial institutions for the traditional debt funding component of its overall project development financing package.

According to De Grey, most of the potential lenders indicated a traditional debt funding capacity of around $800 million based on De Grey’s September 2022 pre-feasibility study for the Pilbara-based project.

For reference, the study estimated pre-production capital costs for Mallina of $1.05 billion, though the project was estimated to produce enough gold to pay this back within two years.

De Grey Chief Financial Officer Peter Canterbury said the company had been “heartened” by the “strong” response from lenders to its request for traditional financing proposals.

“A range of indicative proposals have been received from highly regarded financial institutions which have significant experience in the mining sector,” Mr Canterbury said.

“The company feels confident that it can deliver an attractive funding package for the development of the project, subject to a final investment decision by the De Grey board.”

He said over 2023, De Grey would further assess and progress various debt, equity and other funding options for Mallina, with the project financing process to conclude in the second half of 2023.

In this vein, De Grey has appointed an independent technical consultant to support the financing process as the company works to complete a definitive feasibility study (DFS) for Mallina by mid-2023.

Shares in De Grey Mining last traded at $1.42 on Wednesday, February 8.


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