St George Mining Limited (ASX: SGQ) has launched a capital raising to fund the next phase of exploration and development activities at its Western Australian projects.
Commitments to raise $5 million have been received from institutional and sophisticated investors for a placement of new shares at 5.2¢ per share.
St George’s leadership team has also committed to investing significant funds in the placement. Julian Hanna, who recently joined St George as general manager, growth and development, has provided a commitment for $100,000 under the placement while executive chairman John Prineas has provided a commitment for $200,000, subject to shareholder approval.
St George will also offer existing eligible shareholders the opportunity to subscribe to new shares in the Company at the same price as the placement. Further details of the Share Purchase Plan, which will seek to raise between $1 million and $2 million, are set out in the ASX release.
“These capital raising initiatives will provide St George with a strong balance sheet to advance the exciting exploration and development assets in its portfolio, particularly at the Mt Alexander Project,” Mr Prineas said.
“With high-grade nickel-copper sulphide deposits discovered as shallow as 20m from surface across a large yet underexplored mineral system, Mt Alexander stands out as a significant opportunity for investors looking for growth opportunities in the nickel sector.
“The location of Mt Alexander in an established mining region of Western Australia further underscores its compelling development potential at a time when investors – and end users – worldwide are searching for the next generation of quality nickel sulphide supplies.
“We are committed to continuing to create substantial shareholder value and thank existing and new shareholders for recognising the strong upside that we have at St George.”