St George Mining receives commitments to raise $7 million underpinning exploration to grow Mt Alexander nickel-copper sulphide footprint

St George Mining Ltd (ASX:SGQ) (FRA:S0G) has received commitments to raise $7 million in an upsized placement of new shares to global institutional and sophisticated investors to step up exploration at the flagship Mt Alexander Project in Western Australia. The placement, which saw the issue of new shares at 8.2 cents per share, was heavily oversubscribed, reflecting the strong investor interest created by the company’s ongoing exploration success that continues to expand the nickel-copper sulphide footprint at Mt Alexander. Strong balance sheet Executive chairman John Prineas said: “With high-grade nickel-copper-cobalt-PGEs starting at just 30 metres from surface, a large underexplored mineral system and a location in an established mining region of Western Australia, our Mt Alexander Project stands out as investors look for significant new high-grade nickel sulphide discoveries. “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. “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.” Capital raising details Due to significant and high-quality investor demand, the company upsized the placement by $2 million to expand and accelerate its exploration activities. Shares to be issued under the placement fall within the company’s placement capacity under ASX Listing Rules 7.1 and 7.1A and will be placed pursuant to Section 708 of the Corporations Act 2001. All the shares to be issued under the placement will rank pari passu with existing ordinary shares. New funds will be applied towards exploration and development activities at Mt Alexander, exploration at the company’s other projects including the Paterson Project and for working capital. Argonaut and Canaccord Genuity acted as joint lead managers to the placement. Next steps Work continues at Mt Alexander and drill hole MAD200 was drilled to a downhole depth of 543.1 metres to test a broad SQUID moving loop (MLEM) anomaly identified at West End. The anomaly was identified in only a single component of the EM data, in the latetime Channel 28 component BZ, and interpreted to potentially represent sulphides at a depth beyond the effective detection limit of the surface MLEM survey A DHEM survey in MAD200 is scheduled for completion this week to search for conductive bodies proximal to the hole. The DHEM survey in MAD196, which tested 50 metres up-dip from MAD200 has already identified three very strong EM conductors that remain untested by drilling.