WA nickel hopeful St George Mining has banked $4 million after tapping institutional and sophisticated investors for funding of its promising but rain-disrupted nickel-copper sulphide project near Leonora.

The Argonaut-led placement was oversubscribed as investors jostled for exposure to the Mt Alexander project, which is based on a 4000m strike zone.

St George’s executive chairman, John Prineas, said he was “delighted” by the show of support from new and existing shareholders and expected drilling to start this week.

“This capital raising strengthens St George’s ability to deliver further shareholder value through continued exploration success, with the strong investor demand for the placement testament to the potential of our exciting Mt Alexander project,” he said.

“Drill hole MAD71 at the Stricklands prospect — with 17.45m of nickel-copper sulphides from 37m downhole — is the kind of thick and high-grade mineralisation which highlights the resource potential at Mt Alexander, something this drilling campaign will continue to test.”