St George Mining (ASX:SGQ) has raised $1,050,000 in capital through an oversubscribed placement of 15,000,000 shares at $0.07 per share.
Shares issued will receive one free option for every three new shares acquired, trading under ASX:SGQOA.
The new shares were predominantly placed with strategic investors.
Funds will be allocated to the company's massive nickel sulphides drilling program at its under-explored East Laverton project in Western Australia.
Diamond drilling will cover 2500 metres, and test at least seven high value drill targets selected by geophysical advisors Newexco.
The experienced Newexco were instrumental in the discovery of some of Western Australia’s biggest nickel discoveries such as Nova, Spotted Quoll and Flying Fox.
John Prineas, executive chairman of St George, commented:
“We are very pleased with the support from investors who recognise the significant potential of our project and the deep value created by our systematic exploration to date.
“The funding we have secured will ensure we can maintain the momentum of our exploration throughout the upcoming drilling program which is testing several outstanding targets for massive nickel sulphides.”
East Laverton Nickel Sulphide Project
St George Mining holds a dominant 2,000 square kilometre landholding in this frontier region of Western Australia.
While BHP withdrew from the farm-in for corporate reasons, it left the company with a 100% ownership of all nickel rights as well as a $3 million dataset.
The mining giant’s work also established the credentials of the project for large scale nickel sulphide mineralisation and interest from major mining companies continues.
Subsequent work by St George has proven the presence of geological criteria required to host multiple nickel deposits.
The Project has similar features to other highly mineralised komatiite nickel sulphide belts in the Yilgarn Craton.
Analysis
St George Mining has received strong support from investors in the oversubscribed capital raising of $1,050,000 at $0.07 per share.
The company is leveraged to exploration success, and has a major drilling program about to commence at its highly prospective East Laverton Property in Western Australia.
Diamond drilling will cover 2500 metres, and test at least seven high value drill targets selected by geophysical advisors Newexco.
The experienced Newexco were instrumental in the discovery of some of Western Australia’s biggest nickel discoveries such as Nova, Spotted Quoll and Flying Fox.
First assay results are expected in mid-July with further results over the following 4-6 weeks.
Success has the potential to re-rate the company given its low market cap of circa $10 million and tight share register.
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