Stelar Metals Ltd (ASX:SLB) has received strong demand from institutional and sophisticated investors for a placement to raise $2.864 million (before costs) at $0.30 per share to support an extensive exploration initiative at the Trident Lithium Project, 50 kilometres north of Broken Hill in Far West NSW.
In June, Stelar completed the acquisition of the Trident project, which extends over the 15-kilometre-long Euriowie Pegmatite Field that is prospective for hard-rock lithium mineralisation. The mapped pegmatites across the project area vary in size but have been reported to be up to 100 metres wide and more than 1 kilometre in length.
The funds raised will be used to advance exploration activities at Trident, including completion of the initial drilling program that’s planned for the coming quarter.
Drilling plans
Stelar has made an application with the NSW resources regulator to undertake an inaugural 19-hole RC drilling program to test beneath outcropping lithium mineralised pegmatites at Trident, Sceptre, Lady Don and the broader Triumph Area including the recently identified Stag and Gloria pegmatites.
The $0.30 issue price represents a discount of 10.31% to the 15 trading day volume weighted average price (VWAP) and a 7.69% discount to the closing share price on September 13.
Non-executive chairman Stephen Biggins has demonstrated his confidence in the company and intends to participate in the placement with an investment of $150,000 at the same price, subject to shareholder approval at the 2023 annual general meeting.
"Strong demand"
Stelar Metals CEO Colin Skidmore said, “Stelar is very pleased to receive the support shown by investors in our Trident Lithium Project as evidenced by the strong demand for the offer.
"The funds secured by the placement will now allow the company to undertake significant exploration activities across a number of lithium targets currently identified within the project with the aim to receive results from our initial drilling program at Trident anticipated in the next quarter.”