Exploration and development company Stellar Resources (ASX code: SRZ) is preparing for new drilling work at its Heemskirk lease with an extra $3.6 million in the kitty.
The company is fully funded for its upcoming 2021 Tin Exploration Drilling Program, aimed at identifying new high-grade mineralisation external to the Heemskrik Tin Project
Stellar said it has received firm commitments to issue more than 163.6 million fully paid ordinary shares at 2.2 cents each, which represents a 33.5 per cent discount compared to the company’s 15-day volume-weighted average share price.
These shares will be issued in two tranches. The first will consist of around 90.9 million shares, which will raise roughly $2 million, while the second tranche will consist of approximately 72.7 million shares for the remaining $1.6 million.
“We are pleased to receive commitments from new and existing shareholders who have recognised the value and potential of Stellar’s Tin assets, including the Heemskirk Tin Project,” said Simon O’Loughlin, Chairman of Stellar Resources.
“The proceeds from the placement will enable the company to be fully funded for its upcoming drilling program, aimed at identifying new areas of high-grade tin mineralisation which will target depth extensions of four of the largest historical silver-lead mines in the highly mineralised Zeehan area,” he added.
These four targets include the historical Oonah, Montana No.1, Zeehan Western and Zeehan Queen No. 4 mines.
Both Oonah and Zeehan Queen have a reported two million ounces of previous silver production, while Zeehan Western previously generated 4.8 million ounces, and Montana generated 7.1 million ounces.
“Our planned holes are targeted at depths below where the historically mined silver-lead lodes are expected to transition to tin mineralisation although there is also potential for deeper high-grade silver-lead lodes to be intersected,” said Gary Fietz, Technical Director at Stellar Resources, last month.
Source: Tasmanian Times https://www.tasmaniantimes.com/2021/03/stellar-resources-raises-3-6m-for-drilling-work-at-heemskrik/#utm_source=rss&utm_medium=rss&utm_campaign=stellar-resources-raises-3-6m-for-drilling-work-at-heemskrik