St George Mining raises $1.2m

St George Mining has completed an oversubscribed capital raising of $1.2 million.

The nickel and gold explorer will use the funds to continue exploration at its East Laverton project, of which it took full ownership last year after BHP Billiton Nickel West withdrew from a farm-in agreement.

St George said the placement to underwrite the drilling campaign was heavily oversubscribed and received strong support from existing and new shareholders.

In all, 9,795,250 shares were issued at 12 cents per share.

Executive chairman John Prineas said St George was very pleased with the strong level of investor support during a difficult time in the market for explorers, and that drilling would now start on May 26.

Under its former farm-in agreement with BHP Billiton Nickel West, St George identified nickel sulphides at East Laverton in 2012.

An ongoing electromagnetic indusction survey uncovered targets that St George believe may represent massive nickel suphide deposits.

“We are about to commence our first ever test drilling of category one EM conductors that may represent massive nickel sulphide deposits, in a project with proven nickel sulphide mineralisation,” Mr Prineas said.

RM Corporate acted as lead broker and manager to the placement and Amery Partners acted as adviser and joint manager.

After being put in a trading halt on Wednesday pending the capital raising announcement, St George shares resumed trading today and held steady at 15 cents at 8.26am WST.