Stellar Resources has successfully raised millions to advance its flagship Heemskirk Tin Project in Tasmania.
The company received commitments for approximately 409 million shares at an issue price of $0.022 per share, for a total of $9 million, per a company report.
Proceeds will be targeted towards development study costs for Heemskirk, which Stellar said is the highest-grade undeveloped tin resource in Australia and the third-highest globally.
Funds will also support due diligence on surrounding infrastructure options and exploration at the highly prospective East Renison Project. This new funding, combined with a recent $2.9 million from option exercises, brings Stellar’s total capital raised in recent months to $11.9 million.
“We are very pleased with the strong support received for this placement from both existing shareholders and new investors, enabling the board to increase the amount raised from what was originally sought,” Stellar managing director Simon Taylor said.
“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.”
According to Stellar, the strong investor interest stems from tin prices trading around $US36,000 per tonne, driven by demand from the electronics and renewable energy sectors.
