Stellar Resources Ltd (ASX:SRZ) has launched a share purchase plan (SPP) to raise up to $500,000 on the same terms as the company’s recent placement announced on October 20.
The placement to sophisticated and professional investors aims 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.
“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,” Stellar non-executive chair Simon Taylor said at the time.
Now, eligible shareholders have the opportunity to participate in the SPP at the same price as the placement.
Fund raised will be used for the following:
- to advance mining studies on the Heemskirk Tin Project;
- exploration programs on Stellar’s West coast and NE Tasmania Project portfolio including follow up drill testing of the recent polymetallic discovery at North Scamander; and
- working capital.
Under the SPP, eligible shareholders can acquire up to A$30,000 worth of SPP Shares without incurring any brokerage costs. Additionally, the company maintains the authority to scale back applications or accept oversubscriptions at the discretion of the directors.
The SPP's offer of securities will be facilitated through an SPP Offer booklet and will follow a specific timetable as outlined in the booklet.