- Gold and nickel explorer Estrella Resources (ESR) receives firm commitments to raise more than $2.08 million under a share placement
- The money will be raised through the issue of more than 119 million shares to professional and sophisticated investors at a price of 1.75 cents each
- Subject to shareholder approval, participants will receive one free attaching option for every two shares, exercisable at four cents with expiry on October 30, 2023
- Estrella will primarily use the money to complete the definitive feasibility study for the 5A nickel mine in WA with the money also set to go to diamond drilling at Carr Boyd
- Shares in Estrella are down 13.6 per cent on the market and are trading at 1.9 cents at 12:55 pm AEST
Gold and nickel explorer Estrella Resources (ESR) has received firm commitments to raise $2,084,357 under a share placement.
The money will be raised through the issue of roughly 119.1 million shares to professional and sophisticated investors at a price of 1.75 cents each.
This price represents a 20 per cent discount to Estrella’s last trading price of 2.2 cents on July 5 and a 13 per cent discount to the 15-day volume-weighted average price of 2 cents.
Subject to shareholder approval, participants will receive one free-attaching option for every two shares subscribed for, exercisable at 4 cents with expiry on October 30, 2023.
Also subject to shareholder approval, Estrella directors will subscribe for an additional $50,000.
Further, Estrella’s drillers, Topdrive Drillers Australia, have agreed to accept $200,000 instead of fees for drilling services.
Estrella will primarily use the money to complete the definitive feasibility study for the 5A nickel mine at its Spargoville project in Western Australia.
The money will also go towards diamond drilling activities at the Carr Boyd nickel-copper project as well as general working capital.
Shares in Estrella were down 13.6 per cent on the market and were trading at 1.9 cents at 12:55 pm AEST.