St George Mining Ltd (ASX:SGQ) has completed a private placement of shares to raise $4 million, paving the way for follow-up exploration after early-stage drilling success.
The funds will support ongoing drilling at the Mt Alexander project where nickel‐copper‐cobalt‐PGE sulphides were intersected over a 4-kilometre strike of the Cathedrals Belt.
Institutional support for placement
The placement attracted strong support from institutional and sophisticated investors, and the issue price of 18 cents per share only represented a nominal discount to the company's recent trading range.
READ: St George poised to establish resource at Mt Alexander high-grade nickel-copper project
Executive chairman John Prineas said: “We are very pleased with the strong goodwill received from new and existing shareholders.
“With the 2018 drill program for Mt Alexander getting underway this week, it is an exciting time for St George shareholders.”
St George building on promising early-stage results
Early-stage exploration success at Mt Alexander identified an extensive mineral system with high-grade nickel-copper-cobalt-PGE sulphides.
One drill hole at the Stricklands prospect was a standout with 17.45 metres of nickel-copper sulphides from 37 metres downhole.
It is this thick and high-grade mineralisation which shows the resource potential at Mt Alexander, and repeat occurrences in the upcoming campaign could be a share price catalyst.