St George Mining Ltd (ASX:SGQ) has completed a placement of more than 37 million shares at 11 cents each, raising a total of $4 million.
Raised capital from the placement will fund upcoming exploration at St George’s Mt Alexander Project in Western Australia and other projects.
READ: St George Mining has commitments to raise $4 million for Mt Alexander exploration
St George executive chairman John Prineas said: “We are very pleased with the strong investor backing which recognises the substantial exploration upside at the high-grade Mt Alexander Project at a time of heightened investor interest in the nickel sulphide market.
“We thank new and existing shareholders for their continued support.”
READ: St George Mining intersects thick high-grade nickel-copper-cobalt-PGE mineralisation at Mt Alexander
The upcoming phase-II drilling program will build on the recent phase-one program which was designed to generate multiple new electromagnetic (EM) targets to expand the potential scale of mineralisation.
Phase-one drilling returned thick and high-grade nickel-copper-cobalt-platinum group elements (PGE) sulphide mineralisation at Mt Alexander.
The best intersections were drilled at the Investigators prospect with results establishing further continuity of high-grade mineralisation.
This mineralisation continues both in the northerly down-dip direction and along the east-west trend of the Cathedrals belt.
READ: St George Mining identifies high priority nickel-copper targets at Mt Alexander ahead of drilling
Prineas said that this was an exciting time for St George shareholders.
He added: “We are preparing a major drill program for Mt Alexander that will test nickel-copper sulphide targets across the highly-mineralised Cathedrals Belt, including a large number of EM conductors."
The combined diamond and reverse circulation program will test the new downhole EM conductors identified from the phase-one drill holes as well as the northern anomalies at Investigators.