PERTH (miningweekly.com) – ASX-listed DGO Gold will raise between A$4.4-million and A$5.9-million through a one-for-two entitlement offer.
The offer will be priced at 75c a share, which represented a 3.5% discount to DGO’s closing price for the five days prior to May 23.
The company said on Thursday that its largest existing option holders have each separately committed to exercise all of their existing options, which will result in up to A$1.18-million raised.
In addition, three of the company’s largest shareholders have also committed to take up 1.33-million new shares, for A$1-million, while DGO’s chairperson, Eduard Eshuys, has agreed to take 533 333 shares for A$400 000.
The capital raised will be used primarily to fund a A$5-million investment in fellow-listed De Grey Mining, while also providing working capital and to fund exploration activities.