St George Mining Ltd (ASX:SGQ) has launched a share purchase plan (SPP) to existing shareholders to raise up to $1.6 million for exploration programs in 2020.
The company is fully funded to undertake aggressive and strategic exploration programs this year, beginning this month with a multi‐rig drill campaign at Mt Alexander with a focus on new targets for high‐grade nickel‐copper sulphide discoveries.
Scheduled to close on May 29, the SPP allows shareholders on the company register at 5:00pm (AWST) on May 8 with a residential address in Australia or New Zealand to acquire shares in the company.
The new funding secured by this capital raising activities is set to support the exploration program at its flagship Mt Alexander Nickel-Copper Sulphide Project near Leonora in WA’s eastern Goldfields.
Drilling to test “exciting targets”
Executive chairman John Prineas said: “We are pleased to offer our loyal shareholders an opportunity to increase their holding in St George ahead of our major drill program at Mt Alexander.
“We have already made four high‐grade nickel‐copper sulphide discoveries over a 5.5-kilometre strike of the Cathedrals Belt.
“We believe that if the high‐grade mineral system is that long, it must also be deeper than the extent of the current shallow discoveries.
“The latest geophysical surveys have identified potential down‐plunge extensions of the shallow mineralisation and potential deeper deposits.
“Our upcoming drill program will focus on testing these exciting targets.”
Share purchase plan
Eligible shareholders will be entitled to apply for the purchase of up to $20,000 worth of shares at 8 cents per share without incurring brokerage or transaction costs.
The amount to be raised under the SPP is $1.6 million and eligible shareholders will receive an Offer Letter and Application Form over the coming days.
Depending on applications received St George may undertake a scale‐back and close the SPP earlier than the closing date.
To apply for shares, eligible shareholders should follow the instructions on the personalised SPP application form that will be sent this week to their mailing address recorded on the company’s share registry.