Star Minerals Secures $1.6M Funding Boost

Star Minerals Limited (ASX: SMS) announced it has secured $1.6 million through a placement of 64,000,000 new shares at $0.025 per share. The funding will primarily be directed toward advancing the Tumblegum South Gold Project toward a decision-to-mine. Key activities include infill and extension drilling, resource upgrades, approvals, environmental studies, and a feasibility study. A portion of the funds will also be allocated to new project generation and general working capital. Bain Global Resources, linked to BGR Mining and Infra Limited, will become a strategic shareholder as part of the placement. BGR was attracted to the project’s economics following the Updated Scoping Study released in May 2024. The placement is structured in two tranches: $750,000 (Tranche 1) and $850,000 (Tranche 2), with Tranche 2 requiring shareholder approval. The issue price reflects a 16.67% discount to the last closing price and a 23% discount to the 15-day VWAP. CPS Capital Group Pty Ltd acted as Lead Manager, receiving a management fee of 2% and a raising fee of 4% on gross funds, along with 10,000,000 unlisted options. The announcement lifts the voluntary suspension applied on March 10, 2025. Star Minerals confirms no material changes to information related to the Tumblegum South gold deposit resource estimate from the May 2023 announcement.