SRZ is using the funds to advance its tin and polymetallic projects in Tasmania. Pic via Getty Images
Mining
Special Report: Stellar Resources has raised $3.2 million at a 14% premium to its latest closing share price as the company looks to advance its Tasmanian tin and polymetallic metals projects.
Stellar Resources (ASX:SRZ) is evaluating its >7.5Mt world-class, undeveloped Heemskirk tin and North Scamander polymetallic projects as global tin production continues to fall.
New cornerstone investor Nero agrees, and is doubling down on tin as it already has an interest in Metals X’s (ASX:MLX) Renison Bell mine, also in Tasmania.
Tasmania is home to Australia’s largest endowment of tin and other polymetallic metal mines, mainly on its western coast.
SRZ’s Heemskirk tin project consists of the Severn, Queen Hill and Montana deposits for a total 7.48Mt @ 1.04% tin, with copper, lead and zinc pathfinder elements.
The company wants to build a 350,000tpa underground mine and processing plant, where 58% of the resources are in the higher confidence indicated category.
SRZ will use the funds to conduct further exploration and shore up provable resources ahead of mine development.
At the high-grade silver-tin and polymetallic North Scamander project, recent geophysical surveys have discovered a breccia-zone target from 130m-150m downhole at NSD005, close to the discovery intersection of 2m @ 141g/t silver, 0.34% tin, 3.8% zinc, 2% lead, 77g/t indium and 19g/t gallium from 130m.
SRZ says the plate extends ~50m down dip and over a strike extent of ~400m at the previously BHP (ASX:BHP) explored project, where eight holes were drilled in the 1980s.
A 500m diamond hole is planned to target the copper-bearing stockwork zone near the centres of the modelled conductor plates and below historic drill holes.
“We are pleased to have received firm commitments to raise $3.2 million and to include institutional fund Nero onto our register as a cornerstone investor,” SRZ chair Simon Taylor says.
“The placement was completed at 0.8c/share, representing a 14% premium to our most recently traded price, which is a great achievement for the company and shows strong confidence in our projects.
“In what has been a difficult time to access capital for junior miners, we are now well placed with over $4 million in cash to advance the company’s exciting portfolio of projects in Tasmania.
“The funds raised will be used to advance the world-class Heemskirk tin project, which is the highest-grade undeveloped tin resource in Australia and third highest globally.
“Additionally, funds will be used to further explore the exciting new high-grade polymetallic discovery at the North Scamander project.
“I look forward to updating the market further with our development and explorations plans for 2024.”
This article was developed in collaboration with Stellar Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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