Lodestar Minerals announces an additional $500,000 capital raise through a third tranche placement, aiming to accelerate its exploration programs and pursue new opportunities.
- Additional $500,000 raised via third tranche placement
- 100 million shares issued at 0.5 cents each, pending shareholder approval
- 66.7 million options issued exercisable at 1 cent, expiring in four years
- Placement targeted at professional investors through Oakley Capital Partners
- Oakley Capital Partners to receive a 7% fee on funds raised
Lodestar Expands Capital Raising Amid Strong Demand
Western Australian explorer Lodestar Minerals Limited (ASX – LSR) has announced an extension to its recent capital raising, adding a further $500,000 through a third tranche placement. This move follows robust investor interest in the company’s earlier rounds, prompting the board to seize the opportunity to bolster its financial position.
The additional funds will be raised by issuing 100 million new shares at a price of 0.5 cents each, subject to shareholder approval. Alongside the shares, the company plans to issue 66.7 million options to investors, exercisable at 1 cent each and valid for four years. These options also require shareholder consent, underscoring the importance of upcoming governance decisions.
Strategic Use of Funds and Investor Engagement
The capital injection is earmarked to advance Lodestar’s exploration programs across its Western Australian gold and base metals projects, as well as to explore additional opportunities that may arise. The placement targets professional and sophisticated investors via Oakley Capital Partners Pty Limited, which will receive a 7% fee on the funds raised in this tranche.
This strategic funding approach reflects Lodestar’s intent to maintain momentum in its exploration activities while managing dilution carefully through staged capital raises. The involvement of Oakley Capital Partners signals confidence from established market participants, potentially enhancing the company’s profile among institutional investors.
Looking Ahead – Shareholder Approval and Market Impact
Shareholder approval will be a critical next step for Lodestar, as it determines the finalisation of the placement and option issuance. The timing and outcome of this approval process will likely influence market sentiment and the company’s share price trajectory. Investors will be watching closely to see how the additional capital translates into exploration success and value creation.
While the announcement does not detail specific projects or timelines for the use of funds, the clear focus on exploration advancement suggests Lodestar is positioning itself for potential discoveries that could reshape its asset portfolio. The company’s ability to convert this capital into tangible results will be key to sustaining investor confidence.
Bottom Line?
Lodestar’s expanded capital raise sets the stage for intensified exploration, but shareholder approval will be the pivotal next hurdle.
Questions in the middle?
- When will shareholder approval for the third tranche placement and options be sought and decided?
- How will the new capital specifically be allocated across Lodestar’s exploration projects?
- What impact might the dilution from this placement and option issuance have on existing shareholders?