St George Mining Ltd (ASX:SGQ) has announced a capital raising programme to fund the next phase of exploration and development activities at its Western Australian projects. Commitments to raise $5 million have been received from institutional and sophisticated investors for a placement of new shares at $0.052/share. The Placement was oversubscribed, reflecting strong investor interest in the Company?s Mt Alexander Project where high-grade nickel-copper-cobalt-PGE sulphides have already been discovered at shallow depths over a strike of 6km.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.
Following the announcement, shares in St George Mining Ltd tumbled 14.29% to $0.054/share.