- Estrella Resources (ESR) is set to raise $1.8 million through a share placement to support exploration activities
- The company plans to complete a definitive feasibility study (DFS) for the 5A nickel mine at its Spargoville project, diamond drilling at its Carr Boyd nickel-copper project and general working capital
- ESR will issue 150 million new shares to private investors at 1.2 cents each, representing a 14 per cent discount to its last trading price
- Additionally, Estrella will seek to issue 75 million placement options, exercisable at 2 cents and expiring on July 31, subject to shareholder approval
- Shares in Estrella are down 3.45 per cent to 1.4 cents at 10:49 am AEST
Estrella Resources (ESR) will raise $1.8 million through a share placement to support exploration activities.
The company said the funds would go towards the completion of a definitive feasibility study (DFS) for the 5A nickel mine at the Spargoville project, diamond drilling at its Carr Boyd nickel-copper project and general working capital.
ESR will issue 150 million new shares to private investors at 1.2 cents per share to raise the funds.
This represents a 14 per cent discount to ESR’s last trading price and a 21 per cent discount to its 15-day volume weighted average price (VWAP).
The shares are not subject to shareholder approval and will be issued under the company’s placement capacity.
Additionally, Estrella will seek to issue 75 million placement options, subject to shareholder approval.
These will be exercisable at two cents and will expire in July 2023.
Shares in Estrella were down 3.45 per cent to 1.4 cents at 10:49 am AEST.