Stellar Resources Ltd (ASX:SRZ) has secured commitments from sophisticated and professional investors to raise $1 million to advance the exploration of its flagship Heemskirk Tin Project on the west coast of Tasmania.
The placement involves the issuance of about 111 million new fully-paid ordinary shares in the company at an issue price of $0.009 each, which is an 18% discount to their recently-traded price.
Welcomed funding
“We are pleased to have received firm commitments to raise approximately $1 million under the placement,” Stellar non-executive chair Simon Taylor said.
“The funds raised from the placement will enable the company to proceed with advancing its exciting portfolio of projects in Tasmania and in particular, its advanced Heemskirk Tin Project and follow-up drilling at its new polymetallic discovery at North Scamander.”
READ: Stellar Resources reveals 24% increase in contained tin at Heemskirk Project in Tasmania
Stellar directors Simon Taylor, Simon O’Loughlin and Tom Whiting intend to participate in the fund-raising by investing $60,000, $60,000 and $50,000, respectively, subject to shareholders’ approval on November 30.
Additionally, the company's board is actively considering the possibility of launching a share purchase plan for existing shareholders in the near future.
Taylor Collison Ltd leads the placement as lead manager and bookrunner.