Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has completed a private placement of ordinary shares to institutional and high net worth resources investors and released its latest corporate presentation.
$3.6 million placement has been completed with allotment of new shares today.
Share Purchase Plan for existing shareholders is underway – eligible shareholders are urged to submit applications as early as possible.
Drilling scheduled to commence at Mt Alexander late next week with a reverse circulation (RC) drill rig due to arrive at site within days, and a diamond rig due to arrive at site the following week.
A total of 45,277,814 shares were issued at $0.08 per share to raise $3,622,225, following very strong interest that eclipsed the amount intended to be raised.
To recognise the support of existing shareholders, a Share Purchase Plan (SPP) was launched by the Company on 12 May 2020 under which Eligible Shareholders are invited to also acquire shares in St George at $0.08 per share. For further details on the SPP, please see our ASX Release dated 12 May 2020 St George Opens Share Purchase Plan. The SPP remains open and is scheduled to close on 29 May 2020.
St George reserves the discretion to close the SPP prior to that date and we urge Eligible Shareholders who wish to participate in the SPP to submit their application as soon as possible.
The new funds secured under these capital raising initiatives will underpin the 2020 drill programme at St George’s flagship Mt Alexander Project, with drilling scheduled to commence later next week.
John Prineas, St George Mining’s Executive Chairman said: “The support received in the Placement – and in the SPP to date – has been very strong and we thank all investors for the backing they have shown the Company.
“The 2020 drill programme will test targets at Mt Alexander with potential for new high‐grade nickel‐copper sulphide discoveries as well as targets to confirm the extension of known mineralisation.
“The shallow nickel‐copper sulphide deposits already discovered in the Cathedrals Belt have confirmed the presence of exceptional high‐grade nickel, copper, cobalt and platinum group metals over a strike of 5.5km.
“We are optimistic that the forthcoming drill programme will discover additional mineralisation of this kind and cement Mt Alexander’s position as the most exciting, advanced high‐grade nickel sulphide discovery in Australia.
“We look forward to reporting results of the drilling over the coming weeks and months.”