Extracted from article titled, Gold Road's play for DGO could...

Extracted from article titled,
Gold Road's play for DGO could flush out De Grey suitors, MiningNews.Net

Shares in De Grey were up more than peers in early trade today as speculators digested Gold Road's recommended scrip offer for DGO valuing the target's company's shares at about A$3.55 each - or $308 million in total.

At current market pricing, the 14.4% De Grey stake is worth about $250 million, while DGO's other assets are a 6.8% stake in miner Dacian Gold (currently equating to about $20 million), about 20% of the $30 million capitalised Yandal Resources, and exploration ground in WA and South Australia.

If De Grey's ambitions to be a 500,000 ounce per annum producer are borne out by feasibility work, the company is likely to be much coveted.

On the other, given the prefeasibility study is not due to be completed until later this year, it remains relatively early days for all but the more aggressive.

Meanwhile, DGO shareholders who accept 2.16 Gold Road shares for each of their stock will get leverage to a dividend-paying company with attributable production guidance this year of 150,000-170,000 ounces of gold at an all-in sustaining cost of $1270-1470/oz - via its 50% stake in the Gruyere project operated by Gold Fields.

Gold Road's tilt for DGO follows its failed bid last year for successful gold explorer Apollo Consolidated in 2021 that went the way of Ramelius Resources.

Shares in Gold Road were up 2% to $1.62 in morning trade, capitalising the company at$1.43 billion, while DGO's stock gained 15% to $3.45, capitalising it at $288 million.

De Grey shares were up 6% at the same time, while Dacian and Yandal were up 4% and 6% respectively.