Stellar gets new major investor
PERTH (miningweekly.com) – Tin explorer Stellar Resources this week welcomed a new cornerstone investor in Luxembourg-based Capetown S.A.
Stellar said on Friday that it had raised A$2.6-million in capital through the placement of 50-million fully paid ordinary shares to Capetown, at an issue price of A$0.052 each.
Subject to shareholder approval, the board of Stellar had also agreed to issue the privately held company with 25-million unlisted options, which could be excercised within three years from the date of issue, at a price of 8c each.
Capetown now had the right to appoint one director to the Stellar board.
Stellar told shareholders that the funds would be used to optimise the Heemskirk tin project, in Tasmania, and for general working capital.
A prefeasibility study for the Heemskirk project has indicated that a capital investment of $114-million would be required to support a yearly production of 4 327 t of tin in concentrate. The project was estimated to have an initial mine life of seven years, with the possibility of expanding this once additional drilling within the current Severn resource was completed.
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