Stellar Resources Ltd (ASX:SRZ, OTC:SLROF) has secured firm commitments to raise $22.1 million before costs through a placement priced at 3.3 cents per share, strengthening its balance sheet as it advances the Heemskirk Tin Project in western Tasmania.
The raising includes the previously announced $17 million strategic placement to Metals X Limited (ASX:MLX), Australia’s largest tin producer, alongside a further $5.1 million placement to existing and new institutional and professional investors.
Demand for the additional placement significantly exceeded the amount sought, with the issue price representing the company’s last traded share price and a 2.2% premium to the 30-day VWAP.
Funds to drive studies and development pathway
On completion, Stellar expects to hold a pro-forma cash position of $33 million, providing funding to progress Heemskirk toward development.
Funds will be used to finalise the project’s prefeasibility study, due in Q3 2026, and support work toward a definitive feasibility study. The company also plans to fund exploration at the nearby East Renison and Granite Tor tin projects, as well as general working capital.
Stellar Resources project locations.
Managing director Simon Taylor said the $17 million cornerstone investment from Metals X represented “a major validation” of Heemskirk and its potential to become a significant new tin operation.
"We are absolutely delighted with the overwhelming response to this capital raising. Securing a $17 million cornerstone investment from a highly respected industry player like Metals X is a major validation of the Heemskirk Tin Project and its potential to become a significant new tin operation.
“The exceptional demand we received for the additional $5.1 million placement reflects strong market confidence in our strategy and the underlying quality of our assets.
“With a robust pro-forma cash balance of $33 million, Stellar is now in a very strong position to advance Heemskirk through our upcoming Prefeasibility Study in Q3 2026 and into the Definitive Feasibility Study.
“This is a transformative milestone for Stellar, and I would like to welcome our new shareholders as we embark on this exciting next phase of growth."
Metals X will become a substantial shareholder in Stellar, holding about 16.4% following completion of the strategic placement and capital raising. Stellar has also agreed to appoint a Metals X nominee to its board.
Heemskirk hosts a mineral resource of 9.51 million tonnes at 0.93% tin for 88,100 tonnes of contained tin, which Stellar describes as Australia’s highest-grade undeveloped tin resource and the third highest globally.
Taylor Collison acted as lead manager and financial adviser to the placement.