Lodestar Minerals (ASX:LSR) is raising $4.7 million through a private placement to fund exploration across the company’s portfolio of assets.
The company will issue 291 million shares at $0.015 each to raise $4.39 million, with Lodestar directors subscribing for $305,700 in this placement, subject to shareholder approval.
One option will be issued for every one share applied for, amounting to a total of 291 million options to be issued in the placement.
Oakley Capital Partners is acting as the lead manager in this placement.
Funds will be deployed to copper exploration at the Three Saints and Los Loros projects in Chile, rare earth exploration at the Virgin Mountain Project in Arizona, and for advancing the Ned’s Creek Gold Project in Western Australia towards a maiden resource estimate.
Chairman Ross Taylor says the company is pleased with the strong support shown in this placement, which was upsized due to “considerable demand” from existing shareholders and other investors.
“We are at an inflection point in Lodestar’s development. Our 10,000 metre [reverse circulation] drilling program at the Ned’s Creek Gold Project in Western Australia is well advanced,” Taylor says.
“Our December 2025 exploration target of 250,000—300,000 ounces across 5-7 million tonnes at 1-1.7 [grams per tonne] gold speaks to the genuine scale of what we are building at Ned’s Creek, and offers potential to generate material cashflow to the business in the medium term given the strength in the gold price.
“In Chile, our Three Saints IOCG and Los Loros copper-molybdenum-gold porphyry projects represent a significant strategic opportunity in one of the world’s premier copper jurisdictions, and we look forward to advancing Three Saints and commencing drilling at Los Loros.
“In the [US], our Virgin Mountain Heavy Rare Earths Project in Arizona is being advanced with the support of an exceptional technical team, and we see considerable upside as global demand for critical minerals continues to grow.
“This raising positions us with the financial ability to execute programs across all three jurisdictions in parallel; a multi-asset, multi-commodity strategy that we believe offers shareholders meaningful diversification and substantial discovery potential.”
Lodestar Minerals is a critical minerals, gold, and base metals explorer with projects in Chile, Western Australia, and the US.
Write to Maddison Elliott at Mining.com.au
Images: Lodestar Minerals