THE BOURSE WHISPERER: St George Mining (ASX: SGQ) completed a private placement of shares, which raise $6.47 million.
According to St George the placement was heavily oversubscribed, which it claimed to be a reflection of the strong investor interest that has been created by the recent results the company has achieved from its ongoing exploration being carried out at the Mt Alexander high-grade nickel‐copper sulphide project.
Approximately 43.165 million shares will be issued at 15 cents per share with one free attaching option exercisable at 20 cents on or before 30 June 2017 for every five shares applied for.
St George indicated the new funds will allow it to aggressively continue exploration activities at the Mt Alexander project, where nickel‐copper sulphides have been discovered over a broad area, which the company considers to demonstrate potential for a new nickel sulphide camp.
The funds will also be put to use exploring at the company’s other Western Australian projects and for working capital.
“The placement provides St George with a strong balance sheet that allows us to vigorously progress the tremendous exploration opportunity at the Mt Alexander project,” St George Mining executive director John Prineas said in the company’s announcement to the Australian Securities Exchange.
“Since commencing drilling at the project earlier this year, we have intersected massive nickel‐copper sulphides at three prospects and expanded the Cathedrals nickel‐copper sulphide belt to 3.5 kilometres of recurrent mineralisation.
“We are committed to continuing to create substantial shareholder value through exploration success, and thank new and existing shareholders for recognising the strong upside of our projects.”