Growth‐focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has successfully received firm commitments from investors for a placement to raise $4 million at an issue price of $0.11 per share.
Growth‐focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has successfully received firm commitments from investors for a placement to raise $4 million at an issue price of $0.11 per share.
HIGHLIGHTS
· Placement undertaken by St George to utilise Junior Mineral Exploration Incentive (JMEI) benefits to raise $4 million
· Strong support from existing shareholders and new investors
· Proceeds to fund Phase 2 of the 2019 exploration programme at Mt Alexander nickel‐ copper sulphide project
· Phase 2 to include drilling of multiple EM targets generated by Phase 1 to expand the scale of the high‐grade sulphide mineralisation at Mt Alexander
· Drill programme targets to be announced shortly, with drilling to resume next month
The Placement was undertaken by the Company to utilise its Junior Mineral Exploration Incentive (“JMEI”) benefits, which expire on 30 June 2019, and was well supported by St George’s existing shareholders and new investors.
The Placement will enable St George to further advance the 2019 exploration programme at its high‐grade Mt Alexander nickel‐copper sulphide project, located near Leonora in the north‐eastern Goldfields of Western Australia.
St George’s upcoming Phase 2 drill programme will build on the recently completed and successful Phase 1 programme, which was designed to generate multiple new EM targets to expand the potential scale of mineralisation at Mt Alexander both laterally and at depth. Modelling of drill targets for Phase 2 is being completed and details will be announced shortly.
Phase 2 drilling is expected to commence in the middle of next month. Following completion of the Placement, St George will cancel its unsecured US$4 million standby loan facility which remains undrawn.
St George Mining’s Executive Chairman, John Prineas, said: “The new funds raised under the Placement have strengthened our balance sheet ahead of commencing the exciting Phase 2 of our 2019 drill programme at Mt Alexander.
“Phase 2 will test a number of EM conductors, many of which were generated from the successful Phase 1 programme completed earlier this year.
“We have established a strong foundation from which to further grow the scale of the high‐grade nickel‐copper sulphide discoveries at Mt Alexander.”
