Gold Road Resources (ASX:GOR) has kept its skin in the game at...

Gold Road Resources (ASX:GOR) has kept its skin in the game at De Grey Mining (ASXEG), signing up for its full entitlement as part of an institutional offer that formed part of a crucial $600 million equity raise.
GOR will emerge with around 17.3% of the company, still its largest shareholder despite being diluted down from a 19.9% position after not participating in an additional institutional placement that formed part of the raising.
The Gruyere gold mine owner, which is known to be looking for a second producing asset, picked up 46,249,692 new shares at $1.10 a pop, its full allotment under the 1:7.95 institutional entitlement offer that made up $174m of the raising.
De Grey announced today that the institutional bookbuild has been completed, raising $514.3m before costs. Only a retail component of the entitlement offer is left, with the 1:7.95 share offer to pull in ~$85m after it opens on Wednesday.
The $600m in fresh cash will be one of two major funding packages for De Grey’s Hemi, where a final investment decision is expected later this year.
It opens the door to a debt package likely to come in at around $1.1 billion. The mine, which will produce 530,000ozpa over its first decade, is expected to cost around $1.3b to construct with a production start date in late 2026 and will be one of Australia’s five largest producing operations.
“The support from existing and new shareholders for the institutional component of the Equity Raising has been overwhelming and reflects the high quality of the Hemi Gold Project at a global level,” DEG MD Glenn Jardine said.
“I would also like to extend my appreciation to the De Grey Board and management, the joint lead managers and our legal and financial advisors for their considerable efforts in successfully executing this landmark transaction.
“Our focus remains on completing the project financing and implementing the project execution plan as we move towards the start of the construction phase.”
Gold Road acquired its stake in De Grey after taking over DGO Gold a couple years back. The holding has given GOR a foot in the door when it comes to partaking in any sale process for the $2.3b company or its key asset.
But it also could be cashed in if GOR needs to raise capital for another acquisition, having recently taken part in (and exited) a process for a 40% stake in Canada’s Greenstone Gold Mines.
Gold Road had $146.2m in the bank at March 31 but valued its listed investments (largely the De Grey stake) at $469m.