Estrella Resources (ASX:ESR) is conducting a placement to raise $3.75 million to fund drilling programs targeting manganese at the Timor-Leste Project in Asia.
Under the placement, which will be managed by Barclay Wells, 125 million shares will be issued at $0.03 per share, which represents a 7% premium to the last trading price of $0.028 on 29 January.
Estrella, which has a market capitalisation of $53.22 million, plans to use the funds to continue exploration efforts and begin drilling at Timor-Leste, as well as for general working capital.
The company believes the Timor-Leste region has strong potential to host economic quantities of mineralisation and aims to unlock manganese resources in virtually unexplored territory.
Estrella says Timor-Leste has a limited mining history and recent efforts to kickstart the industry, combined with highly prospective geology, presents an opportunity for the company.
Occurrences of gold, silver, copper, manganese, and chromite have been noted across the region. However, modern systematic exploration is required to uncover, map, and quantify these and to locate new occurrences.
Estrella Resources is a mineral explorer and developer focused on emerging manganese projects in Timor-Leste, as well as mineral projects in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Estrella Resources
