Galileo Mining Ltd (ASX:GAL) is raising $6.5 million to facilitate ongoing drilling and exploration for Nova-style nickel/copper/cobalt deposits at its Fraser Range project.
The funds will also be used for drilling and exploration for palladium and nickel at Galileo’s Norseman project and for working capital purposes.
Galileo is exploring its Norseman and Fraser Range projects for base metals in southeast Western Australia and has a 100% ownership of Norseman.
It also has joint ventures with the Creasy Group over highly prospective tenements in the Fraser Range.
The Creasy Group is a major shareholder in Galileo and cornerstone investor.
Placement closes heavily oversubscribed
Galileo has received firm commitments from sophisticated and institutional investors to raise the $6.5 million with 25 million shares to be issued at $0.26 per share.
Importantly cornerstone investments have been made by two of GAL’s major shareholders in Creasy Group and IGO Ltd.
Inyati Capital Pty Ltd acted as lead manager to the placement.
“This placement, in conjunction with the company’s existing cash reserves, puts Galileo in a strong position to fund multiple exploration programs both at our Norseman palladium-nickel project and at our Fraser Range nickel-copper-cobalt project,” Galileo managing director Brad Underwood said.
Plenty of drilling to come
Galileo is undertaking a 10,000-metre aircore drilling program designed to target highly anomalous palladium and nickel soil sample results at the Norseman Project.
Work is expected to begin late September/October.
Further to this, a 1,200-metre diamond drilling program will follow up on sulphides identified in RC drilling at the Delta Blues prospect in the Fraser Range.
Additional drilling will be planned at both projects as results become available.
“A large aircore drilling program for palladium and nickel is due to start at Norseman in late September/October with a diamond drilling campaign planned for the Fraser Range later in the year," Underwood said.
"We look forward to getting the drill rods turning with the aim of making high value resource discoveries.”