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- St George Mining (SGQ) has received commitments to raise $7 million in capital to fund an ongoing exploration program at the Mt Alexander Project
- Both institutional and sophisticated investors took part in the placement, which saw SGQ shares offered at 8.2 cents per share
- The company’s Executive Chairman said the extra cash will help SGQ “scope out the full mineral potential” at the WA-based asset
- The successful capital raise also bolsters St George’s balance sheet, with a recent quarterly report showing the company ended March with $2.24 million in the bank
- Company shares are 5.26 per cent in the red, trading at 9 cents per share
St George Mining (SGQ) has received commitments to raise $7 million in capital to fund an ongoing exploration program at the Mt Alexander Project.
The mining stock first announced plans to raise additional capital back last week when it entered a trading halt ahead of the fundraiser.
The company’s since announced it carried out a placement for institutional and sophisticated investors, with SGQ shares offered up at 8.2 cents per share.
SGQ also stated it plans to use the extra cash from the placement to step up exploration at its flagship high-grade nickel-copper sulphide project in WA’s Goldfields Region.
“Recent results from drilling and geophysical surveys at the West End and Investigators Prospects have confirmed the potential for significant mineralisation at depth, below the shallow high-grade deposits already discovered,” Executive Chairman John Prineas said.
“With this heavily oversubscribed placement, St George can now use its strong balance sheet to scope out the full mineral potential at the Mt Alexander Project,” he added.
The company also confirmed some of the money will also go towards a maiden drill programme at its Paterson Project, which is scheduled to begin later this month.
Additionally, the capital raise has helped bolster St George’s balance sheet, with a recent quarterly report showing the company ended March with $2.24 million in the bank.
SGQ burnt through $1.15 million on operating activities during the same three-month period, with $526,000 going towards exploration and evaluation costs.
Company shares are 5.26 per cent in the red and trading at 9 cents per share at 1:51 pm AEST.
