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Emerging Pilbara gold miner with almost $2b of funding

De Grey financing

De Grey Mining has received commitments for more than $1 billion of financing from local and international lenders.

Having received credit approved term sheets from a syndicate of domestic and international commercial banks, De Grey said Australian Government credit agencies, the Northern Australia Infrastructure Facility and Export Finance Australia, were close to confirming their funding participation.

De Grey is expected to receive a $1 billion senior debt facility and $130 million cost overrun facility across the financing streams.

This will help fund the construction of the Tier 1 Hemi gold project in the Pilbara region of WA, which De Grey hopes to commence in the second half of 2024, with a two-year construction period to follow.

De Grey then hopes to achieve first gold production in the second half of 2026.

It comes after the company closed a $600 million capital raise in May, which was said to unlock further financing discussions.

De Grey chief financial officer Peter Canterbury recognised the achievement.

“We have reached another significant corporate milestone as we move closer to the commencement of construction of Hemi,” he said.

“We look forward to moving ahead with our lender group and finalising documentation over the coming months to achieve the targeted $1 billion senior debt facility in the second half of 2024.

“Combined with our existing cash reserves exceeding $850 million following our recent $600 million equity raising, the proposed debt package is expected to fully finance the development of Hemi and brings us closer to a final investment decision once we receive environmental approvals for commencement of project construction.”

De Grey will aim to produce 553,000 ounces (oz) of gold at Hemi in its first year of operation, at all all-in sustaining cost of $1229 per ounce. Year two will see peak production at 570,000oz, followed by another seven years of production hovering around the 530,000oz margin.

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