Stellar Resources Ltd (ASX:SRZ) has taken its recent capital raising total to almost $2.48 million after closing a share purchase plan (SPP) oversubscribed for $591,500 before costs.
The company received valid applications for 39,433,282 shares at $0.015 per share with directors subsequently accepting all valid applications in full.
Stellar announced the SPP on August 22 in conjunction with a placement to institutional and sophisticated investors and lead managed by Taylor Collison Limited that raised $1,888,425 at $0.015 per share.
Use of funds
Funds from the two capital raising exercises will be used to continue to fund exploration and development on the company’s portfolio of projects, including the Heemskirk Tin Project as well as for general working capital.
Executive director Gary Fietz said: “On behalf of the board of Stellar Resources Ltd I wish to thank existing and new shareholders for their participation in the company’s fund-raising initiatives via the placement and the share purchase plan.
"The SPP, along with the placement, strengthens our balance sheet to allow us to progress our plans to continue to fund exploration and development on the company’s portfolio of projects, including the Heemskirk Tin Project and for general working capital.”
Director participation in the SPP amounted to $75,000, which represented 13% of the overall subscriptions.
Under the SPP, shareholders in the company registered in Australia or New Zealand on the record date of August 19, 2022, were entitled to subscribe for up to $30,000 of new fully paid ordinary shares.
Attaching options
Investors in the placement and eligible shareholders under the SPP will also be issued one free attaching unlisted option for every two new shares subscribed for and issued, subject to the company obtaining shareholder approval at its upcoming Annual General Meeting scheduled to be held on November 8, 2022.
The attaching options will be exercisable at $0.025 on or before an expiry date of two years from the date of issue.
It is expected that the SPP shares will be issued on Friday, September 30, 2022, with quotation to occur on or around Monday, October 3, 2022. The SPP shares will rank equally with existing shares in the company.