PERTH (miningweekly.com) – Junior nickel developer St George Mining will raise A$4-million through a share placement, making use of the Junior Mineral Exploration Incentive (JMEI), which will expire at the end of the month.
The JMEI is a tax credit arrangement, which allows mineral exploration companies that have no mining income, to renounce and pass future tax deductions to their Australian resident investors.
St George on Thursday said that the share placement to investors was priced at 11c a share, with both existing and new investors supporting the capital raise. Some 36.36-million shares will be issued under the company’s existing placement capacity.
The funds raised from the placement will enable St George to further advance its 2019 exploration programme at its Mt Alexander nickel/copper sulphide project, in Western Australia.
The company’s upcoming Phase 2 drilling programme is expected to build on the recently completed Phase 1 progamme, which was designed to generate multiple new electromagnetic targets to expand the potential scale of mineralisation at Mt Alexander.
The Phase 2 programme is expected to start in the middle of next month.