St George Mining (ASX:SGQ) is now ready to escalate drilling of nickel sulphide targets at its East Laverton Project in Western Australia.
St George received strong support from strategic investors in raising $1.6 million through the placement of 20 million shares at $0.08.
The placement was heavily oversubscribed, with RM Capital acting as lead manager.
Driving shareholder interest in the raising was positive drilling results received through the current campaign.
John Prineas, executive chairman, commented:
“We are very pleased with the strong level of investor support and appreciate the confidence expressed by new and existing shareholders in our projects and exploration programs.
“St George has achieved significant corporate and project milestones this year and we are looking forward to continuing an aggressive exploration campaign and delivering exploration success.”
Expanded East Laverton footprint
Earlier in the month St George wrapped up the acquisition of the Hawaii and Mt Alexander North projects.
These compliment the company's flagship East Laverton Project and increase the likelihood of the company making further nickel sulphide discoveries.
The acquisition was made from BHP Billiton Nickel West Pty Ltd.
Upfront cash costs of $40,000 are minimal with a royalty payable to BHP only on successful mineral production, allowing the company to dedicate resources to exploration work.
These highly prospective projects are located south-west of the Agnew-Wiluna belt which hosts numerous world class nickel and gold deposits.
Analysis
Strategic investors have shown their support for the company's current focus on drilling high-priority nickel sulphide targets at its East Laverton Project.
St George has recently been identifying occurrences of disseminated nickel sulphides at its Windsor prospect, with new drilling intersecting thick mineralised ultramafic material.
This geology is considered a textbook setting for a massive nickel sulphide deposit and suggests St George’s systematic approach to exploration at Windsor may result in an important discovery.
Upcoming catalysts:
- Assays from Windsor will start in 2 weeks and follow for several weeks.
- Drilling of the powerful EM conductors at Desert Dragon to start in around 10 days.
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