Lodestar Raises $520,000 via 47 Million Shares to Fund Chile Drilling
Lodestar Minerals has raised $520,000 through a share placement to fund its inaugural reverse circulation drilling at the Darwin gold project in Chile, signaling a pivotal step in its exploration strategy.
- Raised $520,000 via placement of 47.27 million shares at 1.1 cents each
- Funds allocated primarily to RC drilling at Darwin project in Chile
- Directors to participate in placement, subject to shareholder approval
- Options issued on a 1:2 basis exercisable at 1.7 cents by March 2027
- Placement managed by Liquidity and structured under ASX Listing Rules
Capital Raising Details
Western Australian gold explorer Lodestar Minerals Limited (ASX: LSR) has successfully completed a $520,000 capital raising through a placement of 47,272,727 fully paid ordinary shares at 1.1 cents per share. The placement targets professional and sophisticated investors, with an attaching option issued for every two shares subscribed. These options carry an exercise price of 1.7 cents and expire on 31 March 2027.
The placement was managed by Liquidity and structured to comply with ASX Listing Rules, including the issuance of 17 million shares under Listing Rule 7.1A and the remainder subject to shareholder approval. Notably, the company’s directors have committed to subscribing for 11.9 million shares, reinforcing internal confidence in the company’s prospects.
Strategic Use of Funds
The bulk of the funds, $400,000, are earmarked for reverse circulation (RC) drilling at the Darwin project in Chile, marking Lodestar’s inaugural drilling campaign at this promising asset. An additional $50,000 will support exploration activities on Australian copper and gold projects, while $70,000 is allocated for working capital and overheads.
Chairman Ross Taylor expressed enthusiasm about the upcoming drilling program, highlighting the positive momentum Australian companies have experienced with South American exploration successes. This optimism underscores the company’s belief in the Darwin project’s potential to deliver significant results.
Implications for Shareholders and Market
The placement and associated options issuance are contingent on shareholder approval, particularly for the shares and options beyond the Listing Rule 7.1A threshold. This introduces an element of governance oversight that investors will watch closely. The directors’ participation in the placement signals alignment with shareholder interests and confidence in the company’s exploration strategy.
With the capital injection secured, Lodestar is positioned to advance its exploration agenda in a region that has recently attracted positive attention for gold discoveries. The success of the RC drilling campaign could be a catalyst for re-rating the stock, depending on assay results and subsequent developments.
Bottom Line?
Lodestar’s capital raise sets the stage for a defining exploration phase, with drilling results poised to shape its near-term trajectory.
Questions in the middle?
- What are the anticipated timelines and targets for the inaugural RC drilling at Darwin?
- How might shareholder approval outcomes impact the pace and scale of exploration activities?
- What market response can be expected if early drilling results confirm significant gold mineralisation?
