Lachlan Star’s $2.16M Placement Puts Exploration Plans on the Line
Lachlan Star Limited has raised $2.162 million through a share placement to fund critical drilling programs at its gold and copper projects in Western Australia and New South Wales.
- Placement raises $2.162 million at $0.05 per share
- Funds to accelerate drilling at Killaloe Gold and North Cobar Copper-Gold projects
- Strong support from existing and new sophisticated investors
- Drilling to test high-grade gold intercepts and promising copper targets
- Tranche Two subject to shareholder approval in November 2025
Capital Raising to Fuel Exploration
Lachlan Star Limited (ASX, LSA) has successfully secured $2.162 million through a share placement priced at five cents per share. This capital injection is designed to underpin the company’s upcoming drilling campaigns across its promising gold and copper assets situated in two of Australia’s most prolific mineral provinces, the Eastern Goldfields of Western Australia and the Cobar Basin in New South Wales.
Focused Drilling Programs at Key Projects
The funds will primarily support Reverse Circulation (RC) and Diamond drilling programs at the Killaloe Gold Project and the North Cobar Copper-Gold Project. At Killaloe, the company plans to follow up on recent regional aircore drilling that revealed broad, high-grade gold intercepts, targeting the Duke and Duchess prospects. Meanwhile, at North Cobar, Lachlan Star aims to complete its maiden RC and Diamond drilling program, testing several high-potential copper-gold targets located north of MAC Copper Ltd.’s CSA mine.
Investor Confidence and Strategic Backing
CEO Andrew Tyrrell expressed satisfaction with the strong backing from both existing shareholders and new sophisticated investors. The placement was split into two tranches, the first tranche raised approximately $1.83 million without requiring shareholder approval, while the second tranche, involving $0.33 million including shares allocated to directors and major shareholder DevEx Resources Ltd, awaits approval at the upcoming Annual General Meeting in November 2025.
Market Context and Share Pricing
The issue price of $0.05 per share represents a discount to recent trading prices, reflecting a strategic decision to attract committed investors and ensure sufficient funding for the company’s exploration ambitions. Bell Potter acted as lead manager for the placement, underscoring the transaction’s professional execution.
Looking Ahead
With drilling programs poised to commence imminently, Lachlan Star is positioning itself to unlock value from its portfolio through potential significant discoveries. The coming months will be critical as the company delivers drilling results and advances its exploration targets, potentially reshaping its market narrative.
Bottom Line?
Lachlan Star’s fresh capital sets the stage for a pivotal exploration phase that could redefine its growth trajectory.
Questions in the middle?
- Will the upcoming drilling confirm the high-grade gold and copper potential indicated by earlier surveys?
- How will shareholder approval of Tranche Two impact the company’s funding and project timelines?
- What are the broader implications for Lachlan Star’s valuation if drilling results meet or exceed expectations?
