Stelar Metals Ltd (ASX:SLB) has started trading on the Australian Securities Exchange (ASX) today following the successful completion of an initial public offering.
The copper and zinc focused explorer raised A$7 million via the issue of shares at A$0.20 per share in the IPO, giving an indicative market capitalisation of A$10M upon listing.
Stelar is actively targeting battery metals in its portfolio of five highly prospective copper and zinc projects in prospective mining regions – the Gawler Craton, Stuart Shelf and Adelaide Fold Belt.
Chief executive officer Colin Skidmore said: “We are thrilled to be listing on the ASX today and thank all our investors, new and existing, who have supported us to date and see the value of our projects.
“We look forward to the commencement of our exploration program and to the future, as we focus on delivering value to shareholders and will continue to assess other projects that are a strategic fit to our portfolio of assets.”
Surge in commodity prices
The South Australian projects provide the company with significant exposure to battery metals at a time of growing market demand.
Commodity prices for copper and zinc are projected to continue to increase beyond 2030– to date, exploration has not kept up with demand as the transition to clean energy through electrification becomes imperative.
Cornerstone IPO investor, Terra Capital (AIM:TCA), has taken a substantial (>5%) position on IPO. The IPO was also strongly supported by retail shareholders.
Stelar’s largest shareholder is non-executive chairman Stephen Biggins, who, as managing director of Core Lithium, has successfully led Core from discovery to fully financed construction of its lithium mine.
The combined expertise of Stelar’s management team and board of directors accumulates to about 100 years of exploration and discovery knowledge.
Project portfolio
Stelar’s project portfolio includes:
- Ex-BHP and ex-Rio Evelyn Dam Project (EL 5792) and Torrens Project (EL 6572 & EL 6264), which are prospective for large-scale iron oxide copper-gold (IOCG) target types within the Olympic Province in the Gawler Craton;
- Linda Zinc Project (EL 6263) which features zinc mineralisation initially discovered by BHP similar to the nearby high-grade Beltana Zinc Mine;
- Gunson Project (ELA 2021/00073), which is adjacent to a series of historic open-pit copper mines and deposits at Mount Gunson; and
- Baratta Project (ELA 2021/00037) which is prospective for Zambianstyle sediment-hosted copper as well as zinc-lead mineralisation.
Next steps
Stelar will use IPO funds to commence a detailed exploration program in Q2-2022 that includes mapping and geochemistry at the Linda Zinc Project, airborne geophysics at the Torrens Project and deep diamond drilling at the Evelyn Dam Project.
Skidmore added: “We are excited about executing our upcoming exploration plans, shaped by our Board and management team’s considerable knowledge, experience and exploration success in South Australia.
“We expect to hit the ground running and look forward to uncovering the potential of our portfolio of battery metals projects.”