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St George Mining to raise up to A$315,000 via loyalty option program

Perth based St George Mining (ASX: SGQ) will raise up to A$315,000 through a loyalty option program that comprises a one for two non-renounceable rights issue of options at an issue price of $0.01 per option, with the funds to be allocated to working capital.

The exercise price is $0.20 with the options to be quoted on the ASX under the code SGQO. The ex-date is 2 November, with the record date 8 November 2011.

The options can be exercised any time before the expiry date of 28 November 2014, and have the potential to provide a $6.3 million capital injection - if fully exercised.

If a full subscription of the rights issue is made, then 31.5 options will be issued, increasing the total options on the stock to 48 million.

Directors reserve the right to place any shortfall, with the loyalty option program first referred to in the company's August 2010 IPO.

St George Mining to get busy exploring East Laverton

St George is currently in a very interesting position, and recently commenced the 2011 field exploration program at the company's East Laverton project in the North-Eastern Goldfields region of Western Australia, which has potential to be a major, new nickel sulphide district.

The project represents a dominant landholding on the eastern fringe of the Yilgarn Craton which has attractive exploration prospects for gold, as well as nickel.

BHP Billiton (ASX: BHP) is sole funding the East Laverton project to a Bankable Feasibility Study.

St George Mining’s tenements cover the southern continuation of the Duketon Belt. The northern part of the Duketon Belt has already yielded several recent nickel sulphide discoveries, including the Rosie Prospect (70% Independence Group NL (ASX: IGO) and 30% South Boulder Mines (ASX: STB)).