Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) today launched a share purchase plan (SPP) for existing shareholders to raise up to $1.6m ahead of a major drill program at the Mt Alexander nickel-copper sulphide project near Lenora in the WA Goldfields.
Share Purchase Plan (SPP) announced to raise up to $1.6 million and scheduled to close on 29 May 2020.
St George fully funded for aggressive and strategic exploration programmes in 2020.
Multi‐rig drill campaign at Mt Alexander to commence this month with a focus on drilling new targets for high‐grade nickel‐copper sulphide discoveries.
The SPP allows shareholders on the Company share register at 5:00pm (AWST) on 8 May 2020 to acquire shares in St George at the price of $0.08 per share, which is the same price paid by investors under the heavily oversubscribed $3.6 million placement that was announced on 7 May 2020.
The new funding secured by this week’s capital raising initiatives will support the exciting exploration programmes at St George’s flagship high‐grade Mt Alexander nickel‐copper sulphide project, near Leonora in the Goldfields.
John Prineas, St George Mining’s Executive Chairman said: “We are pleased to offer our loyal shareholders an opportunity to increase their holding in St George ahead of our major drill programme at Mt Alexander.
“We have already made four high‐grade nickel‐copper sulphide discoveries over a 5.5km strike of the Cathedrals Belt. We believe that if the high‐grade mineral system is that long, it must also be deeper than the extent of the current shallow discoveries.
“The latest geophysical surveys have identified potential down‐plunge extensions of the shallow mineralisation and potential deeper deposits. Our upcoming drill programme will focus on testing these exciting targets.”
Share Purchase Plan: Eligible Shareholders will be entitled to apply for the purchase of up to $20,000 worth of Shares at $0.08 per share without incurring brokerage or transaction costs.
The amount to be raised under the SPP is $1,600,000. Eligible Shareholders will receive an Offer Letter and Application Form over the coming days. The SPP is scheduled to close on Friday, 29 May 2020 (Closing Date), and Eligible Shareholders are urged to submit Application Forms as early as possible. Depending on applications received the Company may, in its absolute discretion, undertake a scale‐back and close the SPP earlier than the Closing Date.