March 12 (Reuters) - De Grey Mining Ltd DEG.AX :
* ANNOUNCES INTENTION TO INCREASE HOLDING OF SHARES IN DE GREY MINING (DE GREY) FROM CURRENT HOLDING OF 10.7% TO ABOUT 16.4%
* WILL INVOLVE PAYMENT TO DE GREY OF $4.75 MILLION
* ENTERED INTO AGREEMENTS WITH 3 VENDORS FOR PURCHASE OF A TOTAL OF 40.9 MILLION SHARES IN DE GREY
* PURCHASE OF 40.9 MILLION SHARES IN DE GREY IS IN RETURN FOR ISSUE OF 6.5 MILLION DGO SHARES & 3.3 MILLION DGO OPTIONS