St George Mining Ltd (ASX:SGQ) has raised $2.7 million through a share placement to sophisticated and institutional investors priced at 14 cents per share.
The funding will go towards expanded drilling at the flagship Mt Alexander project in Western Australia where drilling is scheduled to resume around 8 July 2018.
The Mt Alexander project hosts the Stricklands, Investigators and Cathedrals prospects.
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More specifically the new funds will go towards drilling at Investigators and Stricklands.
Diamond drilling at Investigators will test new electromagnetic (EM) conductor targets.
Reverse circulation (RC) and diamond drilling at Stricklands will be part of the ongoing definition drilling following the nickel-copper sulphide discovery at the prospect last year.
First target at Investigators to be X1
The Investigators prospect is the largest of the three prospects in the Cathedrals Belt at the Mt Alexander project.
The downhole EM conductors to be drilled are considered excellent targets for the identification of further massive nickel-copper sulphide mineralisation.
The first conductor to be drilled will be X1, which is modelled with a very strong conductivity of 67,000 Siemens.