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St George Mining Ltd Gains Investment From Terry Streeter

St George Mining Ltd (ASX:SGQ) has now completed a heavily oversubscribed capital raising, with strong support from institutional and strategic investors.

The raising included 25 million shares at $0.085 per share, to raise circa $2.1 million.

John Prineas, executive chairman, commented:

"We thank new and existing shareholders for their support and for recognising the potential for a significant uplift in our valuation on drilling success.

"We are very pleased to welcome Mr Terry Streeter, who has an outstanding record of success in the WA nickel sector, as a major shareholder in St George.

"Mr Streeter founded Western Areas in 2000 and took it from a $5m IPO to Australia's leading nickel sulphide producer.

"He was also a major shareholder in Jubilee Mines which had a market capitalisation of $20m when it discovered the Cosmos nickel sulphide deposit in 1997 and was sold to Xstrata for $3.1 billion in 2007.

"We appreciate the confidence that Mr Streeter and other investors have shown in the tremendous potential of our projects."

Analysis

Funds raised from today's placement will be used for exploration at the company's high quality Western Australian projects and for working capital.

Drilling programs are scheduled to commence shortly to test nickel sulphide targets at the Mt Alexander Project, as well as both gold and nickel sulphide targets at the East Laverton Project.

This will provide near-term news flow.

St George now has 188.5 million shares on offer.

RM Capital acted as lead manager to the placement.

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