- Great Southern Mining (GSN) is set to raise $1.75 million to support upcoming drilling plans
- The company will issue over 71 million shares at 2.4 cents to sophisticated and professional investors to raise $1.71 million
- On top of this, and subject to shareholder approval, directors have committed to raising a further $400,000
- Great Southern Mining will use the money to drill at its Duketon gold project as well as conduct survey work at its East Laverton nickel project
- GSN shares are trading at 3 cents at 10:19 am AEDT
Great Southern Mining (GSN) on Thursday announced it had received firm commitments from sophisticated and professional investors to raise $1.71 million through a placement.
In addition, the company may secure extra funds, with several of its directors committing to invest $400,000. This is subject to shareholder approval, which will be sought at a general meeting to be held next month.
All up, Great Southern Mining will issue roughly 73 million shares at 2.4 cents to raise the funds. The issue price represents a 16 per cent discount to its five-day volume-weighted average price (VWAP) and a 19 per cent discount to its 15-day VWAP.
The money will support drilling programs at GSN’s Duketon project, where five “high-priority” targets have been discovered on top of the mineralisation found at the Southern Star, Golden Boulder and Amy Clarke prospects.
The materials stock will also undertake electromagnetic surveys at the Granite Well and Rotorua komatiite trends at its East Laverton nickel project.
“After a busy year in 2022 refining and increasing our geological knowledge of the structural controls of our Duketon gold project, we are now well-positioned, with a number of high-priority targets ready to be drill tested,” GSN Managing Director Matthew Keane said.
“The company’s focus now shifts to the efficient execution of high-impact drilling programs along multiple mineralised trends.”
Drilling is expected to start during the current quarter.
GSN shares were last trading at 3 cents at 10:19 am AEDT.