St George Mining (ASX:SGQ) has raised $1,400,550 from a capital raising issuing 20,007,864 ordinary shares and together with 6,669,288 options exercisable at $0.20 on or before 30 June 2017.
The raising was oversubscribed via a placement ready to fund a high impact drill campaign of nickel sulphide targets which has commenced at the under-explored East Laverton project in Western Australia.
This will test at least seven high value drill targets defined by geophysical advisors Newexco, which were instrumental in the discovery of some of Western Australia’s biggest nickel discoveries such as Nova, Spotted Quoll and Flying Fox.
More than 2,500 metres of drilling will be carried out on the targets, upping the prospects for a new discovery to be made.
John Prineas, executive chairman of St George Mining, said:
“The oversubscribed capital raising is testament to the high quality of our nickel sulphide project and its strong pipeline of targets.
“Our highly anticipated drilling program is now underway and we are well positioned for potential exploration success.
“It’s a great time to be a shareholder in St George, he said.”
The company is leveraged to exploration success given its low market cap of circa $9.7 million and tight share register.
The shares issued under the Placement were issued pursuant to the company’s 15% placement capacity under ASX Listing Rule 7.1 and the company’s additional 10% placement capacity under ASX Listing Rule 7.1A.
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