Estrella Resources Limited (ASX: ESR), a company focused on mineral exploration, is pleased to announce it has entered into an underwriting agreement with Million Link (China) Investment Ltd to underwrite the majority balance of its existing quoted options. The listed options, exercisable at $0.018 each, are set to expire on December 13, 2026 (ASX: ESROB). Estrella Resources is an ASX-listed company engaged in the exploration and development of mineral projects. Their primary focus is on nickel and copper assets in Western Australia.
Under the terms of the Underwriting Agreement, Million Link will underwrite the exercise of 445,000,000 Options, representing an underwritten amount of $8,010,000 before costs. The agreement involves Million Link subscribing for, or procuring subscriptions for, the number of shares equal to the number of Underwritten Options not exercised by the Expiry Date (the ‘Shortfall Shares’).
Funding will be received in two tranches of $4,005,000. The first tranche is payable to Estrella Resources within 5 days of executing the Underwriting Agreement, and the second tranche within 40 days. Million Link is not a related party of Estrella Resources. As compensation, the underwriter will receive a fee of 8% (excluding GST) of the final Underwritten Amount.
Million Link will also receive 80,000,000 new unlisted options exercisable at $0.045, expiring 3 years from the date of issue, issued under the company’s current ASX Listing Rule 7.1 placement capacity on the receipt of funds in full after 40 days. These options convert to Estrella Resources Limited fully paid ordinary shares per $1,000,000 of underwriting funds received, subject to a 25% penalty if the full amount of $8,010,000 is not received within 40 days. The Underwriting Agreement includes standard commercial terms and termination events, as detailed in Appendix 1 of the announcement.
