Stellar Resources Ltd (ASX:SRZ) has received firm commitments to raise $1,888,425 via a placement and has launched a share purchase plan (SPP) to raise an additional $500,000 to advance ongoing exploration and development projects, including its Heemskirk Tin Project, and for general working capital.
Under the placement exercise, Stellar will issue 125,895,000 new fully paid shares in the company to sophisticated and professional investors at an issue price of $0.015 each.
It is also offering one free attaching option for every two new shares, exercisable at $0.025 each and within two years of the issue date.
Taylor Collison Ltd, the lead manager for the SPP, will receive a management fee of 2.0% of the gross proceeds raised under the placement, a selling fee of 4.0% of the gross proceeds, and 25,179,000 broker options.
Meanwhile, the SPP shares for eligible shareholders are offered at terms similar to the placement.
Stellar may accept up to $1,000,000 in additional capital in the event the SPP is oversubscribed and will use the extra funds for the same purpose.
Pleased with firm commitments
Stellar executive director Gary Fietz said: “We are pleased to have received firm commitments to raise approximately $1.9 million under the placement and to also be offering a SPP to all our eligible shareholders on the same terms which intends to raise an additional $500,000.
“The funds raised from the placement and the SPP will enable the company to proceed with its planned Phase 2B drilling program and advance other project development activities at our flagship Heemskirk Tin Project, along with continuing to progress our North East Tasmania Gold and Base Metals Exploration Project and for general working capital.”