“With investor interest in forward-looking commodities – particularly nickel and copper – undergoing structural change, this is an exciting time for our company,” the executive chairman said.
St George Mining Ltd (ASX: SGQ) has completed a private placement of fully paid common shares to institutional and sophisticated investors for proceeds of $5 million.
A total of 92,307,692 shares were issued at $0.052 per share in the placement to raise nearly $4.8 million.
In addition, a share award of $200,000 to Executive Chairman John Prineas is subject to shareholder approval and a notice of meeting will be issued in due course.
The company has also opened a stock purchase plan (SPP) for existing shareholders, giving them the opportunity to invest in the company at the placement price.
St George Mining’s Executive Chairman, John Prineas, said: “We greatly appreciate the support of new and existing shareholders, who recognize the significant benefit of our projects.
“St George is finalizing updated exploration and development programs for the Mt Alexander project and our new Paterson project. I look forward to announcing these programs in the coming days.
“These exploration and development programs, which will build on the considerable success and knowledge
delivered from our work to date on both projects, have the potential to be significant near-term value drivers for St George.
The company aims to raise an additional $1 million under the SPP, although it reserves the right to accept requests for up to $2 million at its discretion.
Use of funds
Funds raised from the capital raise will support exploration and development activities at the flagship high-grade nickel-copper sulphide project at Mt Alexander in St George and the emerging Paterson project, which has multiple copper targets -or compelling assets, as well as for working capital and general business capital. expenses.
“The share purchase plan is now open and allows eligible shareholders to acquire shares at the same price as the shares issued under the placement,” Prineas said.
“If shareholders have not yet received their personalized application form, they should contact St George or our Computershare register to ensure they have the opportunity to participate before the offer closes.”
There were 58,919,093 shares issued pursuant to the company’s 10% investment capacity under ASX Listing Rule 7.1A and 35,311,676 shares issued pursuant to the company’s current investment capacity under of registration rule 7.1.
In addition to the shares issued in connection with the placement, 1,923,077 shares at $0.052 per share have been issued to DDH1 Drilling (ASX: DDH) Pty Ltd in connection with drilling services.
Following the issuance of these securities and those being placed, the Company has 683,421,706 fully paid common shares outstanding.
Canaccord Genuity (TSX:CF, LSE:CF) acted as lead investment manager.
“With investor interest in forward-looking commodities – particularly nickel and copper – undergoing structural change, this is an exciting time for our company,” the chairman added.
About Mount Alexander
The Mt Alexander project is located in the Goldfields area 120 kilometers south-southwest of the Agnew-Wiluna belt, which hosts many world-class nickel deposits.
The project comprises six granted exploration licenses which form a contiguous package with a seventh granted exploration license to the southeast of the main concession package.
The Cathedrals, Stricklands, Investigators and Radar nickel-copper-cobalt-PGE discoveries are on E29/638, which is jointly owned by St George (75%) and Western Areas Limited (25%).
St George is the project manager, with Western Areas retaining a 25% non-contributory interest in respect of E29/638 only until there is a decision to operate.
All other buildings in the project are 100% owned by St George.