Stellar (ASX:SRZ) speeds Heemskirk Tasmanian tin development with firm $10m commitments

Stellar Resources has received firm commitments for a $10 million placement to speed up the drills and cap off feasibility studies over Australia’s highest grade undeveloped tin resource at its Heemskirk project in western Tasmania.

Two institutional investors in the form of Paradice Fund and Regal Funds Management have cornerstoned the raising with $6.9 million between them at a 4.6 per cent premium to Stellar’s 30-day average.

While not a typical commodity headliner, an increasingly disparate supply-demand balance has seen the price of the alloy-maker move skyward by about 50% since late last year.

And demand for new drilling is there too, with the Stellar accounts now well stocked to augment and develop the 77,870 tonnes of contained tin already in place at Heemskirk.

Stellar Executive Chairman Simon Taylor welcomed the company’s new substantial holders and said the placement was a fantastic achievement, providing an enviable cash balance exceeding $14 million.

“The funds raised will be critical to advancing our world class Heemskirk Tin Project through to development, as we look to accelerate drilling programs to aid our scoping study and prefeasibility study later this year,” Taylor said.

“Tin has seen a major resurgence since the start of the 2024 following supply issues from Myanmar, Indonesia and the DRC, which when coupled with increasing demand has seen the tin price push to over $US34,000 per tonne.

“Our Heemskirk project is well positioned to diversify the supply chains and fill the looming tin deficit.”

More than half the world’s tin is now used for soldering and computer processors and commodity watchers have bet on increasing demand given the import in electrification.

Stellar acquired its initial 60% interest in Heemskirk back in 2008, and then full control in 2011 after buying the remaining stake from now-defunct Gippsland, who believed consolidated ownership offered the best possible chance of mining.

Earlier metallurgy has shown tin is recoverable using a similar process to the nearby Renison Bell tin mine, and Stellar will continue to advance metallurgy and environmental studies as it takes Heemskirk to a long-awaited development

In parallel Stellar will advance metallurgical testwork and necessary environmental baseline
studies as the company progresses the world’s third highest-grade undeveloped resource.

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