Stellar Resources to raise $2.18 million for gold hunt, more

Melbourne-headquartered Stellar Resources Limited said a key part of the capital raising was expected to fund its planned gold exploration program in the North-East.

That was subject to state authorities granting the 10 exploration licences Stellar applied for on September 10.

The company also has tin assets at Zeehan.

It has been working for years towards mining them, although North-East gold now appears to be the priority.

The gold exploration licence applications cover a large part of the North-East.

Stellar said it would look for Victorian-style gold exploration targets, with the Melbourne Zone of the famed Western Lachlan Fold Belt extending under Bass Strait to Tasmania.

The belt hosted significant goldfields including Bendigo, Balllarat and Stawell, while Tasmania's North-East produced the Beaconsfield Gold Mine - expected to soon resume operations under new owner NQ Minerals - the New Golden Gate Mine, the Lefroy Goldfield and hundreds of smaller gold mines and finds.

Stellar said the capital raising had been structured as a placement to raise $300,000 and a fully underwritten, non-renounceable entitlement offer to raise a further $1.879 million.

It said lead manager Taylor Collison was the underwriter and had agreed to take up any shortfall shares under the entitlement offer.

As well as exploration and minerals projects, the funds would be used for general working capital.

Stellar said all of its directors would take up their full entitlements under the entitlement offer through their nominee entities.

"The capital raising is a very positive outcome for the company and will enable us to progress with our gold exploration in North-East Tasmania," chairman Simon O'Loughlin said.