Star Minerals (ASX:SMS) has completed a placement of $1.6 million to further progress its flagship Tumblegum South Gold Project in Western Australia.
In a two tranche placement, the company has received the remaining $850,000 following shareholder approval at its general meeting on 23 May 2025.
CPS Capital Group acted as the lead manager for the placement.
Now a strategic shareholder in Star Minerals, Bain Global Resources is associated with Indian mining contractor BGR Mining and Infra.
Star Minerals, which has a market capitalisation of $3.64 million, raised $750,000 in the first tranche, offering a total of 64 million shares at a price of $0.025 per share.
The offer price represents a discount of 16.67% to the closing price, as well as a 23% discount to the 15-day volume weighted average price (VWAP).
Meanwhile, key elements of the mining works approval at Star Minerals’ Tumblegum South Gold Project are being evaluated by the company. Following the appointment of mine approval process consultant ResourcesWA, work now involves all studies and information that is required for the mining approvals.
The company says it is making strong progress through the steps required to commence mining at the Tumblegum South Gold Project.
ResourcesWA are advancing the approvals, including undertaking a mining feasibility study.
Drilling will begin in June, with site preparation starting this week.
Star says the infill drill program, which is part of a larger drilling program, will also generate some of the sample required for waste material classification required to define the waste dumps and mine closure plans.
Infill drilling aims to increase existing mineral resource confidence and there are additional holes planned for extensional drilling to the northwest of the proposed pit location similar structural targets.
Managing Director Ashley Jones says the company is pleased to progress the Tumblegum South project with a new strategic shareholder, Bain Global Resources.
“With drilling about to commence at the project and the gold price continuing to rise, it is timely that we have secured these funds to help bring the project into production,” Jones says.
Funding will allow the company to complete infill and extension drilling, resource upgrade, approvals and environmental studies, as well as a Bankable Feasibility Study at Tumblegum South.
Star Minerals is primarily focused on the development of the Tumblegum South Gold Project, aiming to bring the project into production in early 2026. The company says free cash flow will capitalise on gold prices sitting significantly higher than the prices used in the updated Scoping Study.
Tumblegum South hosts a resource of 616,000 tonnes @ 2.28 grams per tonnes gold for 45,000 ounces of contained gold, with an indicated resource of 337,000 tonnes @ 2.52g/t gold for 27,000 ounces gold.
Write to Maddison Elliott at Mining.com.au
Images: Star Minerals
