A spinoff organisation of Bryah Resources, Star Minerals, recently announced a significant funding acquisition of US$3.6mn (A$5mn) ahead of its listing on a local stock exchange, expected to take place in October. The funding has been raised to assist Star with its plans to acquire Tumblegum South holding—its parent organisation, which is expected to cost A$500,000, along with nine million shares and seven million performance rights.
Star Minerals, is a gold explorer in Western Australia, with its primary focus on the gold and copper industries. With the aim of advancing exploration capabilities, the company’s plans to acquire Tumblegum South—located 40km from Meekatharra, Western Australia—will open it up to potential resources of around 600 kilotonnes, a figure that was measured from the drilling of 49 holes, covering 5,640 metres of drilling between 2013 and 2019.
Raising funds for mining acquisitions
Greg Almond, Chief Executive Officer of Star Minerals, has expressed the significance of the funding. ‘Our point of difference to other gold IPOs is that we have an actual gold resource and a pathway to gold production. The market has recognized that and it has been an important factor in the successful fundraising’, says Almond.
Mitchell Atkins, Chief Investment Officer at Magnolia Capital Group, also said, ‘the outlook for gold continues to strengthen, and we believe Star Minerals has a sound growth strategy and significant opportunity in an under-explored area known for its gold deposits’.
Star also has plans to acquire the West Bryah Project from seven vendors, with an input of around two million shares and production royalties of 0.75%. The company will also create 15 million shares through the Intellectual Property Office, priced at 20 Australian cents each.
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