Star Minerals Secures $1.6 Million in Capital Raise, Gains Strategic Investor

Highlights:

• $1.6 million Capital Raise: Star Minerals Limited (ASX: SMS) secured firm commitments for a $1.6 million placement to advance the Tumblegum South Gold Project.
• Strategic Investor Onboard: Bain Global Resources, linked to India’s BGR Mining & Infra Limited, joins as a key shareholder.
• Project Development Focus: Funds will support drilling, resource upgrades, environmental approvals, and a feasibility study.

Successful Capital Raise to Fund Growth

Star Minerals Limited (ASX: SMS) has secured firm commitments to raise $1.6 million through a share placement. The funds will primarily support the development of the company’s Tumblegum South Gold Project, as well as potential new project opportunities. At the time of writing, the company confirmed that 64 million new shares will be issued at $0.025 per share under this placement.

Strategic Investor Strengthens Position

As part of the capital raise, Bain Global Resources, an affiliate of BGR Mining & Infra Limited—one of India’s leading mining contractors—will become a strategic shareholder in Star Minerals. This investment is expected to enhance the company’s growth prospects, particularly in light of the strong economics presented in Star Minerals’ recent Updated Scoping Study (May 2024).

Breakdown of the Placement

The capital raise will be executed in two tranches:

• Tranche 1: $750,000 will be raised within the company's existing placement capacity.
• Tranche 2: $850,000 will be raised, subject to shareholder approval.

Use of Funds

Proceeds from the placement will be allocated to advancing the Tumblegum South Gold Project, specifically for:

• Infill and extension drilling
• Resource upgrade activities
• Environmental studies and regulatory approvals
• Completion of a feasibility study
• Additionally, part of the funds will support new project generation and general working capital requirements.

Industry Confidence and Outlook

With the backing of a major mining player and fresh funding secured, Star Minerals is well-positioned to accelerate its development efforts. The next steps will focus on completing essential project milestones, with a clear pathway toward a decision-to-mine at Tumblegum South. Investors and analysts will closely monitor the company's progress as it moves toward unlocking further value in the Australian gold sector.

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