In uncertain times, cash is king. A phrase not lost on Mark Creasy-backed, nickel-focused Galileo Mining (ASX: GAL) which has further boosted its already enviable bank balance by a further A$5 million.
The oversubscribed placement will increase Galileo’s bank balance to over $9 million and will see sophisticated and institutional investors subscribe for 22.7 million shares at an issue price of $0.22 per share, a 19% discount to yesterday’s closing price of $0.27.
Interestingly, existing shareholder Independence Group – which wholly owns the Nova nickel mine some 100km along strike from Galileo’s project – will emerge with an 8.9% stake, up from 4.9%, in the nickel play.
With the boost in funds, Galileo will accelerate its exploration program at the Lantern nickel-copper sulphide discovery at its Fraser Range project – a joint venture with shareholder and well-known prospector Mark Creasy’s private company Creasy Group.
Its upcoming aircore drilling campaign will jump from 4,000m to 8,000m at Lantern – which lies along strike from Legend Mining’s Mawson discovery – with drilling to begin tomorrow.
Exploration will target an area along strike from the sulphide mineralisation discovered in previous drilling (LARC003), which is on the margin of a large intrusion with similar geology to the Nova ore body.
There remains over two kilometres of untested strike length at Lantern and the increased capacity for exploration is expected to significantly improve the Company’s activities within the region.
Funds will also be used for other prospects in the Fraser Range nickel belt, and for working capital purposes.
This placement, in conjunction with the Company’s existing cash reserves, puts Galileo in a very strong position to accelerate its exploration programs in the Fraser Range and in particular the follow-up exploration of the nickel-copper sulphides already discovered at the Lantern Prospect,” Galileo Managing Director Brad Underwood said.
“We are delighted to have received such strong support for the placement and will immediately double our drilling program which commences tomorrow. We have outstanding targets along strike from Legend Mining’s Mawson discovery and are looking forward to updating the market with new results in the near future.”
Nascent Capital Partners acted as lead manager to the placement.
Shares in Galileo Mining were trading at 27c prior to entering a trading halt on Tuesday.