St George Mining Ltd (ASX:SGQ) has completed a private placement of fully paid ordinary shares to institutional and sophisticated investors for proceeds of $5 million.
A total of 92,307,692 shares have been issued at $0.052 per share under the placement to raise almost $4.8 million.
As well, an allotment of shares to the value of $200,000 to executive chairman John Prineas is subject to shareholder approval with a Notice of Meeting to be issued in due course.
SPP opens
The company has also opened a Share Purchase Plan (SPP) for existing shareholders, giving them the opportunity to invest in the company at the placement price.
St George Mining’s executive chairman John Prineas said: “We greatly appreciate the backing of new and existing shareholders, which recognises the significant upside in our projects.
“St George is finalising updated exploration and development programs for both the Mt Alexander Project and our emerging Paterson Project. I look forward to announcing these programs in the coming days.
“These exploration and development programs, which will build on the significant success and insights
delivered from our work to date at both projects, have the potential to be significant near-term value drivers for St George.”
The company aims to raise a further $1 million under the SPP, although it reserves the right to accept applications for up to $2 million at its discretion.
Use of funds
Funds secured under the capital raising will underpin exploration and development activities at St George’s flagship Mt Alexander high-grade nickel-copper sulphide project and the emerging Paterson Project, which has several compelling copper-gold targets, as well as for working capital and general corporate expenses.
“The Share Purchase Plan is now open and entitles eligible shareholders to acquire shares at the same price as shares issued under the placement,” Prineas said.
“If shareholders have not yet received their personalised application form, they should contact St George or our registry Computershare to ensure they have an opportunity to participate before the offer closes.”
Placement details
There were 58,919,093 shares issued pursuant to the company’s 10% placement capacity under ASX Listing Rule 7.1A and 35,311,676 shares issued pursuant to the company’s current placement capacity under Listing Rule 7.1.
In addition to the shares issued under the placement, 1,923,077 shares at $0.052 per share were issued to DDH1 Drilling (ASX:DDH) Pty Ltd in connection with drilling services.
After the issue of these securities and those under the placement, the company has 683,421,706 fully paid ordinary shares on issue.
Canaccord Genuity (TSX:CF, LSE:CF) acted as lead manager to the placement.
“With investor interest in future-facing commodities – particularly nickel and copper – undergoing a structural change, it is an exciting time for our company,” the chairman added.
About Mt Alexander
Mt Alexander Project is in the Goldfields region 120 kilometres south-southwest of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits.
The project comprises six granted exploration licences which are a contiguous package with a seventh granted exploration licence to the southeast of the core tenement package.
The Cathedrals, Stricklands, Investigators and Radar nickel-copper-cobalt-PGE discoveries are on E29/638, which is held in joint venture by St George (75%) and Western Areas Limited (25%).
St George is the manager of the project, with Western Areas retaining a 25% non-contributing interest in regard to E29/638 only until there is a decision to mine.
All other project tenements are owned 100% by St George.