Estrella Resources (ASX: ESR) has bolstered its war chest, locking in a $3.75 million placement to advance its exploration and drilling efforts in Timor-Leste. The capital injection is a crucial step as the company moves towards an ambitious drilling program targeting high-grade manganese prospects in the Southeast Asian nation.
The Placement Deal
Estrella secured firm commitments from sophisticated investors for 125 million fully paid ordinary shares at $0.03 per share—a 7% premium to its last closing price of $0.028 on 29 January 2025. Even more notably, the issue price represents a 17.7% premium to the 10-day volume-weighted average price (VWAP) of $0.0255.
Barclay Wells Ltd managed the placement, pocketing a 6% management fee for its role. The new shares will be issued under Estrella’s existing ASX Listing Rule 7.1A capacity, with completion expected around 10 February 2025.
Where the Money’s Going
Estrella has earmarked the fresh capital primarily for its exploration and drilling program in Timor-Leste, where it is systematically targeting large-scale, high-grade supergene manganese mineralisation. The company has already made two major discoveries—at Ira Miri and Sica—where rock chip assays have returned manganese grades of up to 58%.
The funds will also support ongoing induced polarisation (IP) geophysical surveys, which have already identified promising low-resistivity anomalies beneath surface mineralisation, particularly at Ira Miri. These results suggest the potential for significant manganese deposits at depth, and the upcoming drilling program will be the first proper test.
Strategic Significance
For Estrella, this placement signals a major commitment to unlocking the mineral potential of Timor-Leste. Managing Director Chris Daws has emphasised the company’s strategy of working closely with local partners, including Murak Rai Timor E.P., to establish a mining industry in the country.
“This drilling campaign is shaping up as a major milestone—not only for Estrella, as we get our first glimpse at potential mineralisation at depth, but also for Timor-Leste, as it represents one of the first serious mineral exploration campaigns in the country,” Daws said.
Strong Exploration Momentum
The capital raise follows an eventful December quarter, during which Estrella completed a $1.25 million placement to support its initial exploration efforts. By the end of the quarter, the company had $728,000 in cash, a figure that will now be significantly strengthened.
In addition to securing funding, Estrella has been working to finalise land access and environmental approvals for its planned reverse circulation (RC) drilling program at Samalari, Sica, and Ira Miri. The company has sourced drilling equipment from Vietnam and Darwin and plans to mobilise towards the end of the wet season in February or March 2025.
What’s Next?
With exploration momentum building, Estrella’s focus now shifts to executing its first drilling campaign in Timor-Leste. The results will be closely watched, as they could provide the first confirmation of significant, mineable manganese resources in the region.
For now, investors appear to be backing Estrella’s strategy. With a fully funded drill program on the horizon, 2025 could be a defining year for the company.
