ASX-listed Stellar Resources announced that it had issued 50 million shares to a new investor in the company, raising a net A$2.6 million. The funds will be used to advance its Heemskirk mine project in Tasmania and for working capital.
In a statement Stellar identified the new investor as ” Capetown S.A, a private family owned company based in Luxembourg. The owner of Capetown S.A. has a long association with the tin industry having spent the last 40 years developing the Metallum Group, a global non-ferrous metal recycling business.” Subject to shareholder approval Stellar will also issue options to buy a further 25 million shares in the next three years.
ITRI View: Capetown is the second significant European private investor to invest in Stellar recently. A pre-feasibility study completed in 2013 indicates that Heemskirk could produce some 4,300 tpy of tin-in-concentrates with mine gate cash production costs of US$14,389/t and capital costs of US$114 million.
