Great Southern Mining raises $2.5m to drive exploration

Great Southern Mining raises $2.5m via a placement
The placement received solid support from sophisticated, professional and institutional investors
Commissioning studies are in motion, investigating a small-scale mining operation at the Mon Ami gold project
Major miner and JV partner Gold Fields contributed to the placement to maintain its holding in GSN

Special report: Great Southern Mining has raised $2.5m via a placement to fast-track exploration program across its WA project portfolio.

The placement was backed by sophisticated, professional and institutional investors – including Gold Fields which participated to maintain its holding, as well as certain directors and management of Great Southern Mining (ASX:GSN) who committed a value of $152,700 at the same price as the placement shares.

Proceeds from the placement will be spent on various exploration programs at GSN’s WA-based projects including continued drilling campaigns at the Duketon gold project to define resources and extend mineralisation at advanced targets.

Attention will also be spent on fast-tracking priority exploration targets that contain shallow, high-grade drill intercepts with gold anomalism over extensive strike lengths up to 5km.

GSN’s short to medium-term strategy is to drill out these key targets with the objective of delineating economic resources.

Leveraging high gold prices

Given the historically high gold prices, which rose to $2640/oz on Wednesday, the company has commissioning studies underway to investigate a small-scale mining operation at the Mon Ami Gold Project in Laverton.

The Mon Ami resource is located on a granted mining licence with many prerequisite technical studies and permits already attained.

Work is also ongoing at the Edinburgh Park joint venture in QLD, with global major gold miner Gold Fields through its 100% owned subsidiary G Ex Australia Pty Ltd, continuing geophysical surveys following the identification of the large-scale induced polarisation anomaly.

Entering 2025 well-funded

“This placement puts Great Southern Mining in a strong position to aggressively explore its highly prospective 100% owned Western Australian project portfolio,” GSN managing director Matthew Keane said.

“The company is entering 2025 well capitalised with exciting drilling programs planned at the Duketon gold project with the prospect of a maiden drilling program at the Edinburgh Park JV, under the management of the skilled Gold Fields team.

“I would like to thank new and existing shareholders for their support in this placement”.

Placement details

The placement comprises the issue of more than 138,07m new shares at a price of $0.017 per share.

In addition, more than 8,9m fully paid ordinary shares will be issued to certain GSN directors and management on the same terms and conditions as the placement shares to raise $152,700.

The issue of these shares will be subject to shareholder approval, which will be sought at a general meeting of the company’s shareholders on a date to be arranged but anticipated to be in January 2025.

This article was developed in collaboration with Great Southern Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.