- South Australian explorer Stelar Metals (SLB) will soon join the ASX following the completion of its IPO
- Stelar is focused on copper and battery metals to address the growing demand for electric vehicles and lower carbon emissions
- The incoming ASX-lister owns a 100 per cent stake in five key projects which will be subject to exploration using the funds raised from the IPO
- Stelar hopes to raise between $5 and $7 million through the issue of up to 35 million shares at 20 cents each
- Stelar Metals expects to be admitted to the Official List of the ASX on March 7, however dates are indicative and subject to variation
South Australian explorer Stelar Metals (SLB) is looking to list on the Australian Securities Exchange through an IPO targeting between $5 and $7 million.
Company strategy
The incoming ASX-lister plans to make its mark by focusing on copper and battery metals required within the electric vehicle (EV) industry and as the world shifts towards lower carbon emissions.
Strategically, Stelar already holds a 100 per cent interest in five key projects which are prospective for iron oxide copper-gold (IOCG), copper, lead and zinc.
The Evelyn Dam, Linda, Torrens, Gunson, and Barratta projects are all located in South Australia which reportedly hosts two-thirds of Australia’s copper resources and is where a number of major copper projects have been discovered over the last decade.
In 2021 alone, the state produced 305,000 tonnes of copper which, to put into perspective, is enough copper to manufacture 3.4 million EVs which could reduce carbon emissions of 10 million tonnes in one year.
It’s estimated that by 2030, 250,000 tonnes of copper will be needed per year as part of the windings in electric traction motors in on-road EVs.
The demand for copper and battery metals positions the company well to become a reliable supplier domestically and even internationally.
The board and management team comprises current MD of ASX-listed materials stock Core Lithium (CXO) Stephen Biggins who’s role at Stelar Metals will be Non Executive Chairman. The team also includes Colin Skidmore as CEO, Jack Rosagro as Company Secretary, and Independent Non Executive Directors Geoffrey Webster and Will Dix.
Initial Public Offering
The IPO aims to issue between 25 and 35 million shares at 20 cents each to raise between $5 and $7 million.
Stelar Metals plans to use the funds to conduct exploration work across its South Australian portfolio as well as cover transaction costs.
Cornerstone investors Terra Capital have taken up a substantial position on IPO.
The company has already outlined its two-year exploration and development plan which includes activities like diamond drilling, geochemical and geophysical activities, and mapping.
If all goes to plan, Stelar will kick off with mapping and geochemical work at the Linda project, followed by drilling at Evelyn Dam and geophysical work at the Torrens project in the June 2022 quarter.
The IPO opened on February 2 and will close on February 18 with shares to be issued on the 24th.
Stelar Metals expects to be admitted to the Official List of the ASX on March 7, however dates are indicative and subject to variation.