St George Mining Ltd (ASX:SGQ) has raised $4 million through an oversubscribed placement that saw shares issued to sophisticated and professional investors priced at $0.18.
The new funding will allow St George to expand and accelerate its exploration and drilling programs at its high-grade Mt Alexander nickel-copper sulphide project in Western Australia.
READ: St George Mining to resume drilling targeting nickel-copper at Mt Alexander
John Prineas, executive chairman, said: “This capital raising strengthens St George’s ability to deliver further shareholder value through continued exploration success, with the strong investor demand for the placement testament to the potential of our exciting Mt Alexander project.
“Drilling is scheduled to commence this week after extensive rainfall caused delays, a resumption we know all investors have been keenly awaiting.
“Our exploration success at Mt Alexander has identified an extensive mineral system with high-grade nickel-copper-cobalt-PGE sulphides over a strike of some 4 kilometres, with drilling last year delivering the best results to date.”
Drilling to commence this week at Mt Alexander
Drilling in 2017 at Mt Alexander intersected thick massive nickel-copper sulphides at each of the Stricklands, Investigators and Cathedrals prospects.
Stricklands is within the Cathedrals Belt where recurrent high-grade nickel-copper-cobalt-PGE sulphide mineralisation has been intersected over a 4-kilometre strike length.
Drill hole MAD71 intersected 17.45 metres at 3.01% nickel, 1.31% copper, 0.13% cobalt and 1.68 g/t total PGEs from 37.45 metres.
Drill rig arrival imminent
Preparatory earthworks for drilling has already been complete and the arrival of the drill rig is considered imminent.