Lodestar’s $2.2M Capital Raise Hinges on Shareholder Approval Amid Expansion
Lodestar Minerals announces a $2.2 million two-tranche capital raising to advance its Chile exploration projects and evaluate new opportunities, signaling renewed investor confidence.
- Two-tranche placement raising $2.2 million
- Funds to advance exploration programs in Chile
- Loyalty options issued to existing shareholders
- Oakley Capital Partners appointed as lead manager
- Directors participating in the second tranche
Capital Raising Details
Western Australian gold explorer Lodestar Minerals Limited (ASX, LSR) has announced a $2.2 million capital raising structured in two tranches. The first tranche, already underway, involves issuing approximately 79 million shares at $0.006 each to sophisticated investors, raising $475,000. The second tranche, contingent on shareholder approval, aims to raise $1.725 million through the issuance of 345 million shares at $0.005 each.
Strategic Use of Funds
The capital injection is earmarked to accelerate Lodestar’s exploration activities in Chile, a region known for its mineral potential, as well as to assess additional opportunities within the country. This move underscores the company’s commitment to expanding its footprint in South America and leveraging promising geological prospects.
Shareholder Incentives and Management Participation
As part of the raising, existing shareholders will receive loyalty options on a 1, 30 basis, exercisable at $0.01 with a four-year expiry, subject to approval. Directors have also committed to participate in the second tranche, signaling confidence in the company’s strategic direction. Oakley Capital Partners, appointed as lead manager and corporate advisor, will receive a 7% fee and be issued options and shares as part of their remuneration.
Market and Investor Sentiment
Lodestar’s Chairman, Ross Taylor, highlighted the strong investor interest and the pivotal nature of this recapitalisation. The successful raising reflects renewed market confidence in Lodestar’s growth potential and strategic vision. The company’s ability to secure sophisticated investors and the involvement of its board members may provide additional reassurance to the market.
Looking Ahead
The next critical milestone will be the shareholder meeting to approve the second tranche and the issuance of options. The outcome will determine the full extent of the capital raised and the dilution impact on existing shareholders. Meanwhile, investors will be watching closely for updates on exploration progress and any new opportunities Lodestar identifies in Chile.
Bottom Line?
Lodestar’s capital raise sets the stage for an intensified exploration push in Chile, but shareholder approval remains the key hurdle ahead.
Questions in the middle?
- Will shareholders approve the second tranche and option issuances as planned?
- How will the additional capital impact Lodestar’s exploration timelines and results?
- What new opportunities in Chile might Lodestar pursue with this funding?
