Western Australian nickel company St George Mining Limited (ASX: SGQ) has launched a capital raising to secure new funding to support ongoing exploration activities at its high-grade Mt Alexander nickel-copper sulphide project, near Leonora in the Goldfields.
Commitments have been received to raise approximately $3.6 million under a private placement through the issue of new shares at $0.08 per share.
The Placement was heavily oversubscribed, reflecting the strong investor interest created by the dompany’s ongoing exploration success at Mt Alexander.
St George is also considering inviting shareholders to participate in capital raising to potentially raise an additional $1.6 million at the same price as the Placement.
Executive Chairman, John Prineas, said the new funds raised under the Placement will allow St George to aggressively continue exploration and development study activities at the Mt Alexander Project, with the next major drill programme scheduled to start later this month.
“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,” Mr Prineas said.
“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.
“In particular, 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.”