St George Mining Limited (ASX:SGQ) has obtained firm commitments from investors for a placement to raise $4 million at an issue price of 11 cents per share.
The placement will enable the company to further advance the 2019 exploration program at its high-grade Mt Alexander Nickel-Copper-Sulphide Project near Leonora in the north-eastern Goldfields of Western Australia.
St George’s upcoming phase II drilling program will build on the recent phase I program, which was designed to generate multiple new electro-magnetic (EM) targets to expand the potential scale of mineralisation.
The placement was undertaken by the company to utilise its junior mineral exploration incentive (JMEI) benefits which expire on June 30, 2019.
It was well supported by St George’s existing shareholders and new investors.
READ: St George Mining intersects thick high-grade nickel-copper-cobalt-PGE mineralisation at Mt Alexander
St George Mining executive chairman John Prineas said: “The new funds raised under the placement have strengthened our balance sheet ahead of commencing the exciting second phase of our 2019 drill program at Mt Alexander.
“Phase two will test a number of EM conductors, many of which were generated from the successful phase one program completed earlier this year.
“We have established a strong foundation from which to further grow the scale of the high-grade nickel copper sulphide discoveries at Mt Alexander.”
READ: St George Mining identifies high priority nickel-copper targets at Mt Alexander ahead of drilling
Modelling of drill targets for phase II is being completed with details to be announced shortly and drilling is expected to begin next month.
Following completion of the placement, the company will cancel its unsecured US$4 million standby loan facility which remains undrawn.
Under the JMEI placement St George will issue about 36,363,637 shares.