St George Mining Ltd’s (ASX:SGQ) decision to reward its shareholders with a bonus issue of new options is extremely timely.
It should be well received given that drilling at the highly prospective Mt Alexander nickel-copper project is only two weeks off.
The options will be issued to shareholders for free on a pro-rata basis of one new option for every twenty 20 shares held as at the record date of February 12, 2018.
John Prineas, executive chairman, said: “The 2018 drill programme will commence shortly at our Mt Alexander Project to follow‐up the outstanding success from last year.
“The new ‘Private Series’ options provide our loyal shareholders with another opportunity to benefit from further exploration success in the upcoming drilling.”
Shareholders benefiting from a capital gain and bonus issue
Having a free kick at a company that is going through a period of rapid growth with some highly prospective exploration activities in the pipeline in 2018 is a positive.
READ: St George poised to establish resource at Mt Alexander high-grade nickel-copper project
The face value of the company’s shares has more than doubled in the last three months, despite the pullback that occurred in December.
Consequently, there are no doubt some sizeable paper gains that investors are sitting on given the company’s shares traded as low as $0.08 before hitting a high of $0.48 December.
Short dated options to tie in with exploration schedule
The new options will be a Private Series which will be unlisted and non‐transferable.
They will be short‐dated with an expiry of 23 April 2018 just 10 weeks after the drilling programme at the Mt Alexander Project is scheduled to commence on February 12, 2018.
Results from the drilling are expected in the second half of February and throughout March 2018.
Only shareholders of St George registered as at the record date of 12 February 2018 will be entitled to receive the new Private Series options.