- St George Mining (SGQ) has launched a placement to secure funding for its Mt Alexander nickel-copper sulphide project
- More than 45 million shares will be issued at a price of 0.8 cents to raise $3.6 million
- The company is also considering a capital raise to raise an extra $1.6 million
- The money raised under the placement will enable St George to continue exploration and development activities at Mt Alexander
- St George has dropped 11.5 per cent and shares are trading for 8.9 cents each
St George Mining (SGQ) has launched a placement to secure funding for its Mt Alexander nickel-copper sulphide project.
Firm commitments have already been received to raise approximately $3.6 million through the issue of 45,277,814 shares at a price of 0.8 cents per share.
St George is also considering a capital raise to raise an extra $1.6 million.
Exact details are unknown as of yet but the shares will be priced the same as the placement.
The money raised under the placement will enable St George to continue exploration and development activities at Mt Alexander.
“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 under-explored areas of the large high-grade mineral system,” Executive Chairman John Prineas commented.
“In particular, the deeper conductive features recently identified at the Cathedral Belt are exciting targets for the discovery of new nickel-copper sulphides,” he said.
“Drilling at Mt Alexander is scheduled to resume at the end of this month with these targets prioritised for immediate drilling,” he added.
Mt Alexander Project
The Mt Alexander Project is located 120 kilometres south-southwest of the Agnew Wiluna belt in WesternAustralia.
The first discovery of high-grade nickel-copper sulphides was made by BHP Billiton Nickel West and the company intersected 3.95 metres at 5.05 per cent nickel, 1.55 per cent copper, 0.11 per cent cobalt, and 4.44g/t platinum group elements from 91.4 metres.
Since then St George has continued this success, with further high-grade discoveries at the Radar, Stricklands, and Investigators prospects.
Most recently in the March quarter, St George returned a high-grade intercept of four metres at 7.53 per cent nickel, 2.47 per cent copper, 0.23 per cent cobalt, and 3.92g/t platinum group elements from 186 metres.
The company also encountered high levels of palladium and rhodium, 3.23g/t and 0.1g/t respectively.
St George has dropped 11.5 per cent and shares are trading for 8.9 cents each at 2:07 pm AEST.