The Capital Crunch: De Grey $600 million Hemi equity raising

De Grey Mining (ASX:DEG) has launched a fully underwritten $600 million capital raising to fully fund the equity component of the financing for its Hemi Project in Western Australia. 

De Grey, which has a market capitalisation of $2.34 billion, will conduct an institutional placement to raise $344 million and a one for-7.95 pro-rata non-renounceable entitlement offer to raise $256 million. 

The issue price is $1.10 per share, representing a 13% discount to the 7 Mayclosing share price of $1.265 and a 10.4% discount to the theoretical ex-rights price of $1.227 as of the same date. 

Proceeds will be used for long lead items, engineering and early works, initial camp infrastructure and project construction costs. 

Funds will also be used for continuing exploration work across Hemi and regional areas, including the Egina joint venture project, alongside general working capital purposes. 

Meanwhile, the Queensland Investment Corporation has agreed to provide EQ Resources (ASX:EQR) a three-year funding facility for up to $20 million, as part of the Queensland Critical Minerals and Battery Technology Fund. 

EQ, which has a market capitalisation of $91 million, says the loan facility will expedite its capacity expansion plan for the Mt Carbine Tungsten Mine. 

The facility also allows the company to advance the phase-one drilling program for underground targets and incorporate results into a detailed Feasibility Study. 

The loan facility will be issued in two tranches. Tranche one comprises $12 million to support doubling processing capacity and beginning underground drill testing, while tranche two comprises $8 million and will support continuing drill testing and starting underground trial mining. 

The fund’s objective is to support Queensland’s critical minerals miners and refiners and the development and manufacturing of battery technologies and advanced materials.

Lithium developer Lepidico (ASX:LPD) has completed an entitlement offer which raised $2.85 million, via the issue of 950,812 million shares and 475.406 million options at $0.009. 

The cash raised will be used to finalise the company’s phase-one project financing. The company says this includes strategic partner and lender due diligence, advancing business development opportunities for collaborations, and potential “large-scale” lithium mica deposits evaluations. 

Mahe Capital acted as lead manager and underwriter to the rights issue. 

Lepidico says the new shares and options will be issued on 10 May 2024. 

Rounding out today’s capital raisings is gold and lithium explorer MetalsTech (ASX:MTC), which is conducting a share purchase plan to raise $1 million for the ongoing development of its 2.7-million-ounce Sturec Gold Mine in Slovakia. 

The funds will also be used to continue strategic processes undertaken in parallel with MetalsTech’s advisors Minmetals Securities. 

Eligible shareholders will be able to apply for up to $30,000 worth of shares at an issue price of $0.23 per share, representing a 23.9% discount to the last traded (7 May) price of $0.285. 

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Images: De Grey Mining
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.