After very strong interest from investors, the board of growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has resolved to increase the amount to be potentially raised under the Share Purchase Plan (SSP) to $3.6 million.
Depending on the final amount of applications received, the Company will undertake a scale back at its absolute discretion. The increase in the proposed raising amount will comply with the maximum number of Shares permitted to be issued under an SPP pursuant to the ASX Listing Rules. The $3,600,000 raised under the SPP will result in 45,000,000 new fully paid ordinary shares being issued.
Under the SPP, Eligible Shareholders (as defined in the SPP) are able to subscribe for between $2,000 and up to $20,000 worth of Shares at the offer price of $0.08 per Share.
Funds raised under the SPP will be used to support the Company’s exploration activities, including the 2020 drill programme for the high‐grade nickel‐copper sulphide Mt Alexander Project.
John Prineas, St George Mining’s Executive Chairman, said: “We appreciate the outstanding support of existing shareholders for the SPP and are pleased to increase the target amount so that there is a more fair and equitable allocation to shareholders.
“The additional funds being raised under the SPP will allow us to prioritise an acceleration of the Mt Alexander drill programme with an additional diamond drill rig to be deployed for testing the new, deeper nickel‐copper sulphide targets.”