Lodestar Minerals (ASX:LSR) has signed an option agreement with Aeramentum Resources to acquire the Darwin Iron Oxide Copper-Gold Project in Chile.
The company is planning to conduct a $1.6 million capital raise, which will fund the next 12 months. The funds will be used for its Australian and Chilean assets, as well as general working capital.
The company is in discussions with brokers regarding the requirement to raise capital to fund ongoing operations and progress its strategy initiatives. The market will be updated within the coming month.
To date, surface rock chip sampling and drone aeromagnetic surveys have delineated numerous targets at Darwin that can be drilled in the near-term. The company says the project is drill-ready, and is planning a systematic exploration program for early next year, including drilling.
Lodestar reports rock chip assays have returned up to 247 grams per tonne (g/t) gold, 8% copper, and 66% iron.
The Darwin Project, which covers 3,100 hectares, lies within the Iron Belt of Northern Chile, which also hosts the Candelaria deposit owned by Lundin Mining (TSX:LUN) and Sumitomo (TYO:8053). The Candelaria resource measures 1.2 billion tonnes at 0.6% copper, 0.13g/t gold, 2g/t silver.
Under the agreement with Aeramentum, Lodestar intends to acquire Aeramentum’s option to acquire the Darwin Project — which it currently holds under a separate deal with Coastal Metals Chile — for 25 million shares at $0.02 each.
Pursuant to that deal, Aeramentum may elect to acquire the Darwin Project by paying Coastal Metals US$2 million ($3.12 million) in cash or shares before 14 August 2027. Lodestar has said it will amend the arrangement to be a cash payment only.
From there, Lodestar will issue another 30 million shares to Aeramentum based on certain milestones within a six-month period, and another 30 million shares upon the satisfaction of additional longer-term milestones.
Managing Director Ed Turner says the company is confident it can deliver value in the near-term, given the project remains vastly under-explored, with numerous historical workings never being drilled or samples.
“The extremely high gold grades with associated high-grade copper and iron are similar to other IOCG deposits within this belt and give us confidence that an economic and significant IOCG deposit may be present,” Turner says.
“We look forward to a second ground visit this week to help refine drill targets with a plan to be drilling early in the new year.”
Lodestar Minerals is an active base metal and gold explorer focused on its assets in Western Australia and Chile.
Write to Aaliyah Rogan at Mining.com.au
Images: Lodestar
