Estrella Resources has secured a strategic investment agreement with a notable investor to raise $350,000 for its Timor-Leste Project.
The investment involves the subscription of 58,333,333 fully paid ordinary shares at $0.006 each, reflecting a 20% premium over the previous closing price of $0.005 on Aug. 28.
In addition to the initial investment, the strategic investor holds an option to subscribe for up to $5 million worth of shares.
The option price is set at the higher of 2 cents per share or a 20% discount to the 10-day volume-weighted average price prior to the option exercise date.
The potential for further funding is contingent on shareholder approval.
Estrella Managing Director Chris Daws commented, "This strategic investment comes at an important time in the company’s exploration and development of its Timor-Leste mineral assets."
"It has been accomplished with minimal dilution to shareholders and Tranche 2, if exercised by the strategic investor, will see substantial development funding become available to the company at a significantly higher premium to the current market prices of the company," Daws added.
Funds from this investment will be used to facilitate manganese exploration, potential resource drilling, and mine development studies.
The company will also issue 8 million ESROB options as a facilitation fee upon receipt of the funds for the Tranche 1 shares.
Estrella Resources is an Australia-based company, which is focused on the exploration and development of nickel projects.
At the time of reporting, Estrella Resources' share price was $0.0055.