Growth-focused Western Australian nickel company St George Mining (ASX: SGQ) has announced a $5.7 million capital raising that will support extensive ongoing exploration programmes at its flagship Mt Alexander nickel‐copper sulphide project, located in the north‐eastern Goldfields.
$5.7 million in new funding secured through an institutional‐led placement
Proceeds underpin extensive exploration programmes at St George’s high‐grade nickel‐ copper sulphide project at Mt Alexander
Diamond drilling continues 24/7 with an additional reverse circulation (RC) drill rig scheduled to arrive soon to accelerate exploration
More than 30 electromagnetic (EM) conductors remain to be drill tested with more high priority targets being established by ongoing downhole EM surveys
Maiden drilling at the new Fish Hook Prospect is scheduled for next month, presenting an opportunity for another greenfields discovery and potential to significantly extend the existing 5.5km strike of high‐grade mineralisation across the Cathedrals Belt
The Company has received firm commitments for a share placement of approximately 38 million ordinary shares at $0.15 per share to raise $5.7 million (“Placement”).
John Prineas, St George Mining Executive Chairman said: “We thank all existing and new shareholders for their ongoing support of our exploration programmes at Mt Alexander which continue to deliver breakthrough results that highlight the untapped potential of the large high‐grade mineral system at the Cathedrals Belt.
“St George is now well‐funded to extend our aggressive exploration programmes across Mt Alexander.
“Programmes are in full swing with diamond drilling running 24/7, RC drilling to resume shortly, downhole EM surveys underway and further surface EM surveys at Fish Hook and West End prioritised to commence shortly.
“Drilling and other field activities will continue until the Christmas break, and we are excited about the potential to deliver more exploration success.
“The results of our recent deep drilling are particularly encouraging with significant intersections of mineralised ultramafic down‐plunge of the shallow high‐grade nickel‐sulphide deposits.
“Our geological model suggests that there may be larger, intrusive‐style nickel sulphide deposits at depth and our additional funding will allow us to expedite further testing of deeper target areas.”
The Placement was undertaken utilising St George’s existing placement capacity under ASX Listing Rule 7.1. All of the shares issued under the Placement will rank pari passu with existing ordinary shares.
Argonaut and Bell Potter acted as Joint Lead Managers to the Placement.