Gold and nickel focused St George Mining (ASX: SGQ) has raised $1,036,741 from its non-renounceable rights issue to provide additional funds to fast track exploration at its East Laverton and Pine Creek projects.
The rights issue offered 10.5 million shares and up to 15.75 million free attaching options. At close on August 31, 6,911,611 shares were applied for and there was a 3,588,389 shortfall.
The free attaching options were on the basis of one share for every five shares held by shareholders on the record date at $0.15 per share, and three free attaching options for every two shares issued.
The company has received expressions of interest in the shortfall from existing shareholders and institutional investors, and is considering placing the remaining shortfall over the coming days.
St George has identified several outstanding gold targets at East Laverton and the company has further refined the existing gold discovery at Pine Creek.
The East Laverton project in the North-Eastern Goldfields region of Western Australia has potential to be a major, new nickel sulphide district.
Drilling of high priority targets, such as the Desert Dragon and Balmoral gold prospects, are scheduled for the third and fourth quarters of 2011. The company believes these targets could host million ounce deposits.
These targets will be the focus of St George's 2011 drilling program with results expected to be released over the next 3-6 months. The company has also entered into a farm-in arrangement with BHP Billiton (ASX: BHP) for the nickel rights at East Laverton.
BHP is sole funding the East Laverton project to a Bankable Feasibility Study.
Following closing of the rights issue, the company intends to launch an option program whereby all eligible shareholders of the company will be offered the opportunity to purchase one option for every two shares at a price of $0.01 per option. These options will be on the same terms as the free options.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19228/st-george-mining-raises-a103m-for-east-laverton-project-19228.html
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