De Grey Mining (ASX:DEG) has successfully raised most of the more than $600 million it sought earlier this week to fund its share of the cost of the $1 billion plus Hemi gold mining project in WA’s Pilbara.

In a release on Friday, De Grey stated that it had completed both parts of its institutional offer—the pro-rata accelerated non-renounceable entitlement offer and the institutional placement—to raise approximately $514.3 million (before costs).

"The institutional component of the Equity Raising received strong demand from existing shareholders and supportive new institutional investors. The Company believes the high take-up rate of existing shareholders in the Institutional Entitlement Offer, together with the introduction of several new funds in the Placement, has enhanced the composition and quality of its share register.

"Major shareholder Gold Road Resources Limited has also committed to take up all its entitlements under the Entitlement Offer by subscribing for 46,249,692 New Shares,” De Grey said.

This means Gold Road’s holding in De Grey will be less than the 19.9% stake it had before the raising was announced, as it did not take up any of the placement shares, while there will be a slight dilution from the retail offer.

"The fully underwritten equity raising, together with existing cash, is expected to fully fund the equity component of the project financing for the Hemi Gold Project,” De Grey said on Friday.

Next, it will run an offer to retail holders looking to raise $85.6 million, which opens next Wednesday.