Galileo investors pitch in for new discovery

Galileo Mining is set to bank $20.4 million from a capital raising cornerstoned by major shareholders Mark Creasy and IGO.

The explorer plans to use proceeds from the raising to expand drilling programs at the Callisto palladium-nickel discovery which sits within its wholly-owned Norseman project in Western Australia. 

Galileo’s share price took off at the beginning of May after announcing the discovery, which it deemed a major palladium-platinum find.

It went from trading at 20 cents to $1.70 within a month.

Shares were offered to institutional and sophisticated investors at $1.20 apiece under the placement announced today, which will add another 17 million shares to its register.

Around $8.7 million of the capital raised came from major existing stockholders IGO and mining entrepreneur Mark Creasy.

“The placement will increase our total cash to approximately $26.5 million and allow us to aggressively explore this significant new palladium province within our Norseman Project area,” Galileo managing director Brad Underwood said.

“We look forward to updating the market with results from this exciting new West Australian discovery.”

Inyati Capital was lead manager to the placement.  

Galileo shares were down 2.64 per cent to trade at $1.29.