Lodestar Minerals (ASX:LSR) is planning to conduct a reverse circulation drilling program at the Darwin Project in Chile, after undertaking a capital raising.
The company aims to raise $520,000 via the issue of 47.27 million shares at $0.011. Participants will receive one option for each two shares subscribed for, exercisable at $0.017 on or before 31 March 2027.
Lodestar directors plan to subscribe for 11.9 million shares, totalling $131,000, subject to shareholder approval.
Out of the $520,000 raised, $400,000 will be used for the drilling program at Darwin, while $50,000 will go towards the company’s Australian copper-gold projects. The further $70,000 will be used for general working capital purposes.
Chairman Ross Taylor says the company is excited to be drilling so soon at Darwin.
“We are also enthused by the positive reaction Australian companies have recently been receiving for positive drilling success in South America and are confident of our own successful program,” Taylor says.
The Darwin Project lies within one of the world’s largest iron-oxide copper gold belts in Chile, which includes the Candelaria deposit which hosts 1.2 billion tonnes @ 0.60% copper, 0.13 grams per tonne gold and 2g/t silver..
Lodestar Minerals is a base metal and gold explorer focused on its assets in Australia and Chile. The company’s Western Australian portfolio includes the Earaheedy, Ned’s Creek, and Coolgardie West projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Lodestar Minerals
