Canadian miner Kirkland Lake Gold has agreed to make a $5 million investment in Western Australian gold junior, De Grey Mining.
Kirkland, which operates the Fosterville gold mine in Victoria, will take 33.3 million new shares in De Grey at 15 cents a share.
The Canadian company continues to expand its presence in the Pilbara’s emerging gold sector with this share purchase.
Last month, Kirkland Lake also secured a $56.6 million investment in Novo Resources, giving it an 18.2 per cent stake in the gold explorer.
Perth-based De Grey plans to use the funds for ongoing exploration and development activities at its Pilbara gold project.
De Grey chairman Simon Lill described the investment as a game changer for the company.
“Together with our recent August capital raising of $3 million, we have now raised $8 million, which confirms funding for our exploration programs through until the end of 2018,” Lill said.
“Kirkland Lake’s interest is in the potential of the conglomerate gold within De Grey’s project area located near Port Hedland in the Pilbara region.
“We welcome this investment and look forward to added assistance in technical, financing, construction, commissioning and operational skills to complement our already strong geological team.”