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Stellar Resources (ASX:SRZ) to raise capital after submitting 10 licence applications

The Market Online Deal Room
ASX:SRZ      MCAP $27.96M
10 September 2020 10:15 (AEST)

Stellar Resources (SRZ) has entered a trading halt ahead of a capital raise announcement.

The company will remain in a trading halt until the earlier commencement of trading on Monday, September 14.

Stellar Resources also announced today it has lodged 10 exploration licence applications (ELAs) in northeast Tasmania which contains a highly prospective area for Victorian-style orogenic gold and intrusive-related gold systems.

There are around 76 historically-known gold occurrences within the ELA areas. Collectively, the ELAs cover a combined 2295 square kilometres.

“Stellar is excited to be in a position where it soon expects to be able to explore for Victorian-style gold exploration targets in relatively underexplored NE Tasmania within the continuation of the Victorian Western Lachlan Fold Belt,” Chairman Simon O’Loughlin said.

“Our geological team and network of technical consultants in Tasmania will also be a great asset in implementing the proposed gold exploration program going forward,” Simon added.

Stellar expects the application process to take between three and six months. If and once the ELAs have been granted, the company will begin an exploration program early next year.

Exploration will include various geophysical survey work, sampling and other fieldwork as well as drilling.

Whether or not the capital raise will support the planned exploration is not yet certain.

Company shares last traded for 1.9 cents on Wednesday, September 9.

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