Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has launched a capital raising to secure approximately $3.6 million in new funding to support ongoing exploration activities at its high-grade Mt Alexander nickel-copper sulphide project, near Leonora in the Goldfields.
HIGHLIGHTS:
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Capital raising underway with:
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$3.6 million secured via a strongly supported placement of new shares to institutional and high net worth resources investors.
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Arrangements to offer shares to existing shareholders at the same placement price being considered.
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Fully funded for next phase of aggressive, strategic exploration programme:
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Multi-rig drill campaign at Mt Alexander to commence this month.
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Targeting new high-grade nickel sulphide discoveries.
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Mine development studies continuing.
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Commitments have been received to raise approximately $3.6 million under a private placement through the issue of new shares at $0.08 per share.
The Placement was heavily oversubscribed, reflecting the strong investor interest created by the Company’s ongoing exploration success at Mt Alexander.
St George is also considering inviting shareholders to participate in capital raising to potentially raise an additional $1.6 million at the same price as the Placement. Further details will be announced shortly.
The new funds raised under the Placement will allow St George to aggressively continue exploration and development study activities at the Mt Alexander Project, with the next major drill programme scheduled to start later this month.
John Prineas, St George Mining Executive Chairman said: “The Placement will provide St George with a strong balance sheet that allows us to vigorously advance the exciting exploration and development opportunity at the Mt Alexander Project.
“We believe that Mt Alexander is shaping as Australia’s next nickel sulphide mine development with the discovery to date of four high-grade deposits and successful exploration work continuing in under-explored areas of the large high-grade mineral system.
“In particular, the deeper conductive features recently identified at the Cathedrals Belt are exciting targets for the discovery of new nickel-copper sulphides. Drilling at Mt Alexander is scheduled to resume at the end of this month with these targets prioritised for immediate drilling.
“We are committed to continuing to create substantial shareholder value through exploration success and thank existing and new shareholders for recognising the strong upside of Mt Alexander.”
