St George raises $3.6 million

St George Mining has launched a new capital raising to secure further funding for its Mt Alexander nickel-copper sulphide project in Western Australia, with the next major drill program to begin this month.

The West Leederville-based company is targeting new high-grade nickel sulphide discoveries, recently identified on the Cathedrals Belt, while continuing mine development studies.

St George will issue approximately 45.3 million shares priced at 8 cents each to raise around $3.6 million.

Argonaut, Bell Potter Securities and Canaccord Genuity are acting as joint lead managers to the placement.

St George is also considering a shareholder offer on the same terms as the placement to raise a further $1.6 million.

Chairman John Prineas said the funding would allow the company to vigorously advance exploration at Mt Alexander, near Leonora in the Goldfields.

“We believe that Mt Alexander is shaping as Australia’s next nickel sulphide mine development with discovery to date of four high-grade deposits and successful exploration work continuing in underexplored areas of the large high-grade mineral system,” he said.

The upcoming multi-rig drill program, scheduled for the end of May, will prioritise the recently identified conductive features at the Cathedrals Belt, which Mr Prineas said were exciting targets. 

St George holds a 75 per cent interest in the Cathedrals, Stricklands and Investigators nickel-copper discoveries while Western Areas holds 25 per cent.

St George shares were down 11 per cent at 1:35pm AEST to trade at 8.9 cents.