A $9 million placement is geared to boost development study costs at Australia’s highest-grade undeveloped tin resource in western Tasmania.
Stellar Resources reported firm commitments for an equity placement of roughly 409 million shares at a price of $0.022 per share, with the raised capital earmarked for its Heemskirk tin project.
The funding commitment presents a major cash boost for the third-highest-grade tin resource in the world, pushing the capital raised in recent months to $11.9 million, after an earlier $2.9 million contributed from option exercises.
Stellar managing director Simon Taylor said the company is “very pleased” with the strong support from both existing shareholders and new investors.
“This enables the board to increase the amount raised from what was originally sought,” he said.
“The funds raised, together with recent option conversions, significantly strengthen our balance sheet and positions Stellar to advance the Heemskirk tin project towards development, as we aim to become a global top 10 tin producer.”
The $9 million will also be allocated to “due diligence” on surrounding infrastructure options close to Heemskirk and exploration costs at what Stellar described as “highly prospective” East Renison project.
With tin prices trading around $US36,000 per tonne ($A55,089), underpinned by strong electronics and renewable energy demand, Stellar said this development reinforces investor interest in new tin supply from “conflict-free” tier-1 mining jurisdictions.
Heemskirk hosts high-grade resource totalling 7.48 metric tonnes (Mt) at 1.04 per cent tin (Sn), containing 77.87 kilo tonnes of tin.
The company’s goal is to become a producer of 3000 to 3500 tonnes per annum (tpa) of payable tin, though this is not yet within reasonable grounds per disclosure.
“The strong investor interest reflects growing recognition of Heemskirk’s potential as a high-quality, conflict-free tin project approaching development in a Tier-1 jurisdiction at a time of robust tin prices and tightening global supply,” Taylor said.
Pre-feasibility studies underway are evaluating potential project optimisations that Stellar said will enable a boost in tin output from the 2024 scoping study.
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