West Australian nickel explorer St George Mining is tapping the market for $5 million at 15c to back drilling at its emerging Mt Alexander project near Leonora.
Bell Potter and long-term St George supporter Argonaut Securities are joint lead managers of the raising, which is expected to close on Wednesday.
St George last traded at 18c, but its shares traded as high as 25.5c in early September when the company announced drilling looked to have extended a new discovery within the project, intersecting more solid grades of nickel at Mt Alexander.
While the nickel sector enjoyed a solid run through August and September as concerns about the supply outlook gained traction, nickel has fallen almost 10 per cent from October 4 to trade at $US16,100 a tonne overnight on Monday.
But with use of the commodity likely to rise in batteries, St George is one of the slew of WA nickel hopefuls attracting renewed interest in the commodity as it drills out Mt Alexander.
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