Stellar rattles tin as exploration gets underway

Stellar Resources (ASX:SRZ) is conducting a two-tranche placement to raise $3.2 million to fund exploration and development at its portfolio of projects, including the Heemskirk Tin and North Scamander Polymetallic projects in Tasmania. 

The $8 million market capitalisation company will be tapping sophisticated and professional investors at an issue price of $0.008 per share, representing a 14.3% premium to the most recently traded price on 19 February. 

Nero Resource Fund has agreed to participate in the placement as a cornerstone investor, committing to invest $2.4 million. 

The placement is being lead managed by Taylor Collison. 

Stellar Resources Chairman Simon Taylor says the placement representing a 14% premium to the company’s most recently traded price is a ‘great’ achievement and shows ‘strong’ confidence in its project portfolio. 

“In what has been a difficult time to access capital for junior miners, we are now well placed with over $4 million in cash to advance the company’s exciting portfolio of projects in Tasmania. 

The funds raised will be used to advance the world-class Heemskirk Tin Project, which is the highest grade undeveloped tin resource in Australia and third highest globally. Additionally, funds will be used to further explore the exciting new high-grade polymetallic discovery at the North Scamander Project.”

The shares issued under the placement will rank pari passu with the company’s existing fully paid ordinary shares on issue.

Participants in the placement will receive one unlisted free attaching option for every 2 shares allocated in the placement. The option will have an exercise price of $0.015 per option and an 18-month term from allotment, subject to shareholder approval. 

Stellar Resources is a diversified mineral explorer focused on its assets in Tasmania that are considered prospective for gold, tin, lithium, and base metals.

Write to Aaliyah Rogan at Mining.com.au   

Images: Stellar Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.