St George Mining Ltd (ASX:SGQ) has received $3.6 million as part of a capital raising to support ongoing exploration at the high-grade Mt Alexander Nickel-Copper Sulphide Project near Leonora in the Goldfields region of WA.
Commitments have been received from institutional and high net worth resources investors to raise approximately $3.6 million under a private placement through the issue of shares at 8 cents each.
The placement was oversubscribed, which reflects the strong investor interest created by the company’s ongoing exploration success at Mt Alexander.
Further opportunity possible
St George is also considering inviting shareholders to participate in a capital raising to potentially raise an additional $1.6 million at the same price as the placement.
New funds raised will allow St George to aggressively continue exploration and development study activities at Mt Alexander with the next major drill program scheduled to start later this month.
“Australia’s next nickel sulphide mine”
Executive chairman John Prineas said: “The placement will provide St George with a strong balance sheet that allows us to vigorously advance the exciting exploration and development opportunity at the Mt Alexander Project.
“We believe that Mt Alexander is shaping as Australia’s next nickel sulphide mine development with the discovery to date of four high-grade deposits and successful exploration work continuing in underexplored areas of the large high-grade mineral system.”
Drilling to resume at end of May
Prineas continued: “The deeper conductive features recently identified at the Cathedrals Belt are exciting targets for the discovery of new nickel-copper sulphides.
“Drilling at Mt Alexander is scheduled to resume at the end of this month with these targets prioritised for immediate drilling.
“We are committed to continuing to create substantial shareholder value through exploration success and thank existing and new shareholders for recognising the strong upside of Mt Alexander.”