ASX-listed gold and base metals explorer Lodestar Minerals (ASX:LSR) has entered into an at-the-market (ATM) subscription agreement with Acuity Capital.
Under the ATM, Acuity will provide up to $2 million of standby equity capital over 40 months to 31 July 2026.
Acuity is touted as the first to provide such funding agreements to Australian-listed companies and is reportedly the largest provider of ATMs in the country. ATM funding provides companies with an additional source of capital that is flexible and cost-effective.
Lodestar reports it has full discretion to utilise the ATM, the maximum number of shares to be issued, the minimum issue price of shares, and the timing of each subscription.
Additionally, there are no requirements for Lodestar to utilise the ATM, and it may terminate the agreement at any time without cost or penalty. Acuity and the ATM also do not place any restrictions at any time on Lodestar raising capital through other methods.
If Lodestar does decide to utilise the ATM, the company is able to set an issue price floor at its sole discretion, with the final issue price being calculated as the greater of the nominated floor price and up to a 10% discount to a volume weighted average price (VWAP) over a period of Lodestar’s choosing.
As security for the ATM, Lodestar has agreed to place 80 million fully paid ordinary shares from its LR 7.1 capacity at nil cash consideration to Acuity Capital. Upon early termination or maturity of the ATM, the company may buy back and cancel the shares placed as security for no cash consideration subject to shareholder approval.
Commenting on the ATM, Lodestar Managing Director, Ed Turner says: “We have established the ATM facility with Acuity Capital as a means to afford Lodestar with increased flexibility to source funding for our exploration activities moving forward into the future. We see the ATM facility as a component of the funding methods available to the company and anticipate it will provide an efficient and effective benefit to all shareholders of the company.”
“We see the ATM facility as a component of the funding methods available to the company and anticipate it will provide an efficient and effective benefit to all shareholders of the company”
Lodestar Minerals is an ASX-listed gold and base metal exploration company focused on its portfolio of projects in Western Australia. Currently the company holds a 20% interest in the Nepean Nickel Project with the remaining 80% interest held by Future Battery Minerals (ASX:FBM), as well as the Ned’s Creek Joint Venture (JV) where Vango Mining (ASX:VAN) is earning a 51% interest.
The company also wholly owns the Earaheedy-Imbin, Jubilee Well, Bulong, Coolgardie West, and Camel Hills Projects.
Images: Lodestar Minerals Ltd
