Estrella Resources Limited (ASX: ESR) is set to raise $11.2 million through an option exercise underwriting agreement with Henslow Pty Ltd to help fund its exciting exploration work at the Carr Boyd Project in Western Australia.
The agreement with Henslow will fully underwrite the exercise of listed options (ASX: ESRO) which are exercisable at $0.05 on or before 5.00pm (WST) on June 27, 2021. As at the date of the Underwriting Agreement, there are 225,812,246 Options on issue which remain unexercised, representing an underwriting amount of $11,290,612. Henslow has received commitments from institutional and sophisticated investors to take up any unexercised Options.
Henslow is an independent corporate advisory firm that have assisted companies in completing deals to the value of in excess of $3 billion in the past five years, specialising in supporting and partnering with growing companies across a number of sectors. Being a member firm of Oaklins, an internationally recognised and respected mid-market M&A advisor, Estrella Resources look forward to an ongoing relationship with Henslow that potentially opens the Company up to further institutional investment at an exciting time in the Company’s growth.
Funds raised will be used by the company to continue to develop its understanding of the geology at the Carr Boyd Project, where massive nickel-copper-iron sulphides have been discovered, most recently with the intersection of 6.75m of massive nickel-copper-iron sulphide part of a 37.2m mineralised zone.
An active exploration programme is underway to unlock this potential with the company utilising drilling, EM surveying, gravity and most recently world leading seismic surveys – with all operations based out of the Company’s recently established mining camp to further accelerate timeframes.
Estrella Resources is also aided by a number of macroeconomic tailwinds, including a globally significant increase in demand for electric vehicles and battery storage, which are nickel-intensive and a continuing source of support for the long-term nickel price.
The funds obtained from the full underwriting of the Options will be sufficient for the company’s current planned exploration activities for at least the next 12 months without any further requirement for capital, including the following RC and diamond drilling;
- T5 Phase 3 – Testing the T5 pyroxenite adjacent to current drilling to determine magma flow and sulphide settling directions (plunge) for T5 mineralisation.
- T5 / Dunn Phase 4 -Extend RC exploration of the T5 basal contact 2 km north past Dunn to determine northern prospectivity.
- Drinkwater / T5 Phase 5 planning – Fixed loop TEM on basal contact from Drinkwater to Carr Boyd utilising seismic interpretation.
- T5 Phase 5 – Testing the T5 pyroxenite utilising seismic south of T5, targeting confluence of Carr Boyd mineralisation and T5 mineralisation.
- Schmidt / Drinkwater Phase 1 – Test basal contact within embayment area using RC and DHEM.
- Tregurtha Phase 1 – Determine controls on mineralisation, DHEM.
- Schmidt / Drinkwater Phase 2 – to determine geology / prospectivity of Tregurtha. Drilling to follow up Phase 1 RC. DHEM.
- Gossan Hill Phase 1 – Determine prospectivity of basal conatct.
- POH Phase 1 – Determine controls on pyroxenite and mineralisation. DHEM.
- T5 Phase 6 – Deep drilling at T5 utilising all datasets to test contact mineralisation at ~1000m depth.
- CSIRO Indicator Mineral Project Carr Boyd – Classification and fingerprinting of Carr Boyd pyroxenites, structural and petrographic studies. Determine geochemical vectors in regolith and determine potential exploration workflow to follow up.