Estrella Resources (ASX: ESR) has entered into a subscription agreement with a strategic investor to initially raise $350,000 to advance the Timor-Leste minerals exploration project.
The company has granted the subscriber an option to subscribe for up to an additional $5 million worth of shares.
The option will be exercisable by the subscriber at any time from the date of completion of the issue of the Tranche 1 Subscription Shares until the date which is 90 days after the date on which the company releases an ASX announcement confirming the delivery and outcomes of a feasibility study in relation to the Timor-Leste Project.
Under the terms of the subscription agreement, the company grants the subscriber the right to register a first ranking security over the company’s interest in the Spargoville nickel rights until the company is able to provide the Subscriber with written notice that 20,000 tonnes of ore have been delivered to a port for sale.
In the event that the company is unable to notify the subscriber that 20,000 tonnes of ore has been delivered to the port for sale within 18 months of entering the subscription agreement, the company will transfer its interests under the Spargoville Nickel rights agreement to the subscriber.
“This strategic investment comes at an important time in the company’s exploration and development of its Timor-Leste mineral assets,” Managing Director, Chris Daws, said.
“It has been accomplished with minimal dilution to shareholders and Tranche 2, if exercised by the strategic snvestor, will see substantial development funding become available to the company at a significantly higher premium to the current market prices of the company.
“In such a short period of time we have been able to establish an in-country exploration team, established exploration office/lab in Dili and a field exploration base. We have made some important mineral discoveries in Timor-Leste within our extensive granted exploration concessions and all of our team look forward to further exploration successes.
}Recent site visits undertaken by various institutions and global organisations has reaffirmed my belief that Estrella has positioned itself well in an extremely attractive mineral exploration region as a ‘first mover’.
