Stelar Metals Ltd begins trading on ASX after raising A$7m to advance battery metals projects

Stelar’s largest shareholder is non-executive chairman Stephen Biggins, who as chief executive of Core Lithium successfully led Core from discovery to the fully funded construction of its lithium mine.

Stelar Metals Ltd (ASX:SLB) began trading on the Australian Securities Exchange (ASX) today after a successful initial public offering.

The copper and zinc-focused explorer raised A$7m via share issue at A$0.20 per share in the IPO, giving an indicative market capitalization of A$10m Australian dollars when registering.

Stelar is actively targeting battery metals in its portfolio of five highly prospective copper and zinc projects in potential mining regions – the Gawler Craton, Stuart Plateau and Adelaide Fold Belt.

Chief Executive Colin Skidmore said: “We are delighted to list on the ASX today and thank all of our investors, new and existing, who have supported us to date and see the value in our projects.

“We look forward to the start of our exploration program and the future as we focus on creating shareholder value and continue to evaluate other projects that strategically fit our asset portfolio. “

Soaring commodity prices

The South Australian projects provide the company with significant exposure to battery metals at a time of growing market demand.

Commodity prices for copper and zinc are expected to continue to rise beyond 2030 – to date, exploration has not kept up with demand as the transition to clean energy through electrification becomes imperative.

The lead investor in the IPO, Terra Capital (AIM:TCA), has taken a substantial position (>5%) in the IPO. The IPO was also strongly supported by retail shareholders.

Stelar’s largest shareholder is non-executive chairman Stephen Biggins, who as chief executive of Core Lithium successfully led Core from discovery to the fully funded construction of its lithium mine.

The combined expertise of Stelar’s management team and board of directors adds up to approximately 100 years of exploration and discovery knowledge.

Project portfolio

Stelar’s project portfolio includes:

  • Ex-BHP and ex-Rio Evelyn Dam Project (EL 5792) and Torrens Project (EL 6572 and EL 6264), which show promise for large-scale iron oxide copper-gold (IOCG) target types in the Olympic Province in the Gawler Craton;
  • Linda Zinc Project (EL 6263) which features zinc mineralization originally discovered by BHP similar to the nearby Beltana high-grade zinc mine;
  • Gunson Project (ELA 2021/00073), which is adjacent to a series of historic open pit copper mines and deposits at Mount Gunson; and
  • Baratta Project (ELA 2021/00037) which is prospective for copper hosted in Zambian-style sediments as well as zinc-lead mineralization.

Next steps

Stelar will use IPO funds to begin a detailed exploration program in Q2-2022 that includes mapping and geochemistry at the Linda Zinc Project, airborne geophysics at the Torrens Project and deep diamond drilling at the Evelyn Dam Project. .

Skidmore added: “We are excited to execute on our exploration plans ahead, shaped by the considerable knowledge, experience and exploration success of our board and management team in South Australia. .

“We expect to start and we look forward to discovering the potential of our portfolio of battery metal projects.”