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St George Mining (ASX:SGQ) plans capital raise – The Market Herald

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  • St George Mining (SGQ) suspended its shares before a capital increase
  • The company started 2022 with $2.8 million in cash and less than two-quarters of available funding
  • St George is also carrying out a major drilling program at the Mt Alexander project and will soon begin an inaugural drilling program at the Paterson project
  • Although there are no details on the increase yet, it is likely that the funds can support current and planned field activities.
  • Shares of the company last traded at 6.3 cents on Monday, March 14

St George Mining (SGQ) suspended its shares before seeking new capital.

The company said the halt in trading gives it time to consider, plan and execute a capital raise. At this point, it’s unclear how much will be raised or how the company plans to spend the money.

The Western Australian gold explorer started the year with $2.8 million in cash and less than two-quarters of available funding.

Asked if he had taken or planned to take any action to raise additional funds, St George said he would continue to manage his cash reserves and adjust his spending if necessary.

The company also said that a major drilling program was underway on the Mt Alexander project and that the next capital raise would be influenced by this program.

St George resumed diamond drilling at the Mt Alexander project in early January to identify high quality targets.

The company also said in its December quarterly report that it plans to launch an initial diamond drill program at the Paterson project to test copper and gold targets. This program is expected to begin either this month or in April.

Based on its current and future exploration plans, as well as its current financial situation, it is fair to say that the company could benefit from an increase in cash.

Details of the capital increase are expected when SGQ shares resume trading on Thursday, March 17.

Shares of the company last traded at 6.3 cents on Monday, March 14.