Lodestar Minerals’ (ASX:LSR) share price has increased 50% to $0.009 on the back of engaging Oakley Capital Partners to lead manage and be corporate advisor for a $2.2 million capital raise.
The two-tranche placement will raise funds to advance exploration across the company’s assets in Chile, as well as assess new opportunities.
Under tranche one, shares will be issued at $0.006 per share. The second tranche, subject to shareholder approval, will comprise the issue of 345 million shares at $0.005 per share.
Subject to shareholder approval, Lodestar’s directors will apply for $100,000 of the second tranche.
Following the issue of all the shares in both tranches, Lodestar will issue one loyalty option for no consideration on the register on a 1:30 basis.
Chairman Ross Taylor says the level of interest and demand reflects renewed confidence in Lodestar’s strategic direction and growth potential.
“This successful recapitalisation marks a pivotal moment in the company’s evolution and positions us to advance our exploration and development ambitions with renewed strength,” Taylor says.
“The successful raising of a significant amount of capital reflects the strong demand and investor confidence in the company’s direction and future potential.”
The Darwin and Three Saints projects are located in Chile. The projects sit in a region which hosts numerous copper deposits and gold-rich iron-oxide copper gold deposits such as Carola and Atacama Kozan.
Lodestar Minerals is an active base metals and gold explorer focused on its portfolio of projects in Western Australia and Chile.
Write to Aaliyah Rogan at Mining.com.au
Images: Lodestar Minerals
