Stellar Resources has received commitments to raise a total of AU$9 million in a share placement to fund development at Australia’s highest-grade undeveloped tin resource.
The company will issue 409 million shares at an issue price of 2.2 cents per share. The placement was supported by existing and new investors.
Stellar Resources plans to use the proceeds from the placement towards the development and exploration costs at its Heemskirk Tin project and East Renison project in western Tasmania.
Stellar managing director Simon Taylor said the company is “very pleased” with the strong investor support for its share issue.
“The funds raised, together with recent option conversions, significantly strengthen our balance sheet and position Stellar to advance the Heemskirk tin project towards development, as we aim to become a global top 10 tin producer.”
The strong investor interest also reflects Heemskirk’s potential as a high-quality tin project amid tightening global supply, Taylor commented.
With tin prices trading at US$36,000 per tonne, underpinned by strong electronics and renewable energy demand, there is renewed investor interest in new tin supply from conflict-free, tier-1 mining jurisdictions, according to the company statement.
Stellar Resources also plans to use the proceeds raised in the placement to conduct due diligence on surrounding infrastructure options close to Heemskirk and exploration costs at the East Renison project.
