Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has closed its Share Purchase Plan (SPP) announced 12 May 2020 with very substantial oversubscriptions.
$3.6 million raised under an oversubscribed Share Purchase Plan.
St George’s strong balance sheet supports an expansion of the drill campaign underway to test high‐grade nickel‐copper sulphide targets at Mt Alexander.
Diamond drill rig due to arrive at Mt Alexander later this week, with a second diamond rig scheduled to arrive later this month.
A total of 45 million shares will be issued pursuant to the SPP to raise $3.6 million, the maximum amount sought under the SPP and a significant increase on the originally announced SPP target of $1.6 million.
Total applications received under the SPP amounted to $9.37m. Given the exceptional high level of demand under the SPP, applications have been scaled back.
Applicants under the SPP will receive a letter in the coming days from Computershare with confirmation of their personal allocations and a refund cheque (where applicable).
The funds raised under the SPP are in addition to the $3.6 million raised in the private placement completed in May 2020.
John Prineas, St George Mining’s Executive Chairman said: “The capital raisings completed over the past month have substantially boosted our cash reserves and allow us to step‐up the pace of drilling at Mt Alexander.
“RC drilling is already underway and the first of two diamond rigs will arrive at site this week. The second diamond rig is due shortly. “It’s an exciting time for St George, and we thank shareholders for their outstanding support of the SPP.”