- St George Mining (SGQ) has placed its shares in a trading halt ahead of a capital raise
- The company started 2022 off with $2.8 million in cash and less than two quarters of available funding
- St George is also carrying out a major drilling program at the Mt Alexander project and will soon began a maiden drilling program at the Paterson project
- While there aren’t any details yet about the raise, it is likely the funds may support current and planned field activities
- Company shares last traded at 6.3 cents on Monday, March 14
St George Mining (SGQ) has placed its shares in a trading halt ahead of seeking some fresh capital.
The company said the trading halt gives it time to consider, plan and execute a capital raise. At this stage, it isn’t clear how much will be raised nor how the company plans to spend the money.
The Western Australian gold explorer started the year off with $2.8 million in cash and less than two-quarters of available funding.
When asked if it had or expects to take any steps to raise further cash, St George stated it would continue to manage its cash reserves and would adjust spending if needed.
The company also said a major drill program is underway at the Mt Alexander project and the next capital raise would be influenced by that program.
St George resumed the diamond drilling at the Mt Alexander project in early January to identify high-quality targets.
The company also stated in its December quarterly report it planned to initiate a maiden diamond drilling program at the Paterson project to test copper and gold targets. This program is expected to begin either this month or in April.
Based on its current and upcoming exploration plans, as well as its current financial position, it’s fair to say the company could benefit from a cash boost.
Details on the capital raise are expected when SGQ shares resume trading on Thursday, March 17.
Company shares last traded at 6.3 cents on Monday, March 14.