Stelar Metals Secures A$2.6 Million to Drill First Deep Tungsten Targets at Hill of Leaders

Capital Raise Fuels Historic Drilling Campaign

Stelar Metals (ASX:SLB) has successfully raised approximately A$2.6 million via a placement of over 13 million shares priced at $0.20 each, a discount of nearly 17% to the last traded price. The capital injection is earmarked primarily for advancing exploration at the Hill of Leaders Tungsten Project in the Northern Territory, including a maiden Reverse Circulation (RC) drilling program scheduled to commence in August 2026.

The placement, conducted under the company’s existing ASX Listing Rule capacity, attracted firm commitments from both new institutional investors and existing sophisticated shareholders. Executive Chair Stephen Biggins highlighted the market's enthusiasm for what he described as a “genuine first-mover discovery opportunity” at Hill of Leaders, emphasising the strategic timing amid global tungsten supply constraints.

Maiden Drilling to Test Untapped Bedrock Potential

Despite tungsten being discovered at Hill of Leaders as far back as 1951, Stelar’s upcoming drilling will mark the first time bedrock beneath the mineralised surface veins has been tested. The Phase 1 RC program plans approximately 3,000 metres of drilling across three sections, designed to interrogate the depth, grade, and continuity of tungsten-bearing quartz veins and greisen systems that extend over a 2-kilometre strike length and up to 200 metres in width.

This drilling campaign aims to unlock insights into the subsurface geology of a system that has seen only limited small-scale historical production, positioning Stelar to potentially define a significant tungsten resource. The project’s timing is notable given the tightening structural global supply of tungsten, driven by Chinese export restrictions and Western nations’ push to secure critical mineral supply chains.

Strategic Positioning Amid Critical Minerals Demand

Stelar’s focus on tungsten aligns with increasing global demand for critical minerals essential to net-zero technologies and industrial applications. The Hill of Leaders project benefits from the company’s management team’s extensive experience in discovery and development within the Northern Territory’s mineral sector.

Beyond the drilling, proceeds from the placement will also fund other exploration initiatives and working capital needs, ensuring Stelar maintains operational momentum as it seeks to define the scale and quality of its tungsten assets.

With rig mobilisation imminent, investors will be watching closely as Stelar embarks on what could be a pivotal chapter in unlocking a strategically important tungsten deposit in Australia.