St George Mining (ASX: SGQ) has closed an over-subscribed 7,500,000 million share placement at $0.11 to sophisticated investors raising $825,000, and is set to commence nickel drilling at Desert Dragon, within its East Laverton project in Western Australia.
Funds raised will be applied towards the ongoing exploration program starting today with deep diamond drilling to test for massive sulphide nickel mineralisation at multiple nickel targets.
Desert Dragon is a compelling target with a known zone of disseminated nickel sulphides intersected in 2012 which may be peripheral to a massive nickel sulphide system.
Initial results of electromagnetic surveys along the Stella Range Belt are currently being assessed and modelled, with an announcement due shortly regarding new conductor targets identified.
The confidence shown by investors is an indication of the prospectivity of St Georges nickel targets, which should lead to further share price appreciation as drilling progresses.
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