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East Star Resources readmitted to London Stock Exchange

Published by
Global Mining Review,


East Star, the Kazakhstan-focused gold and copper explorer, has raised gross proceeds of £3.1 million by way of an oversubscribed placing and subscription of 62 million new shares at a price of 5p, and has been readmitted to the Official List of the Financial Conduct Authority by way of a Standard Listing following its acquisition of 100% of the share capital of Discovery Ventures Kazakhstan Ltd (DVK). As a result of the acquisition, East Star now owns 100% of DVK.

Trading in the company’s shares recommenced trading at 08:00 on 10 January 2022 on London Stock Exchange’s Main Market for listed securities under the ticker ‘EST’.

Also as of 10 January, Charles Wood resigned as a Director of the company and Alex Walker and David Minchin joined the Board of Directors.

Highlights:

  • Oversubscribed placing and subscription raising gross proceeds of £3.1 million.
  • Re-admission to London Stock Exchange following acquisition of DVK.
  • DVK holds initial package of four licences in two producing but underexplored mineral belts in Kazakhstan.
    • Chu-Ili belt – high grade historic samples, prospective for gold and copper.
    • Rudny Altai belt – copper-zinc potential, in heart of high-grade volcanic massive sulphide belt.
  • Results from initial 3127 m of drilling and 739 km2 of magnetic survey due in 1Q22.
  • New mineral law (2018) modelled on Western Australia.
  • Licences will be held in 80/20 joint venture established together with state mining company.
  • CEO based full time in Kazakhstan, supported by experienced local team.
  • Established logistics.
  • Access to historic data and local technical expertise.

Alex Walker, Chief Executive Officer, commented:

“Kazakhstan today is like having all of Western Australia available to peg but in the 1970s. The size is almost the same, the mineral law is modelled on Western Australia’s, and the deposits discovered are high grade and highly profitable.

“Our first mover advantage has enabled us to secure exceptional tenements where there is already evidence of mineralisation close to surface but where the potential for discoveries under cover using modern geophysics is incredibly exciting.

“We believe all our projects have large mineral potential without large mine requirements, and Kazakhstan’s existing infrastructure and operating costs mean a low economic threshold for development. I have based myself full time in Kazakhstan to drive forward what I believe represents a once in a generation opportunity in the mining sector.

“I am delighted to bring the company to the main market of the London Stock Exchange today following an oversubscribed fundraising, which will enable us to pursue an intensive exploration programme over the coming months and years. We will waste no time, with the first set of drilling results due this quarter, and an expectation that we will be operational in the field throughout the year.”

Read the article online at: https://www.globalminingreview.com/mining/10012022/east-star-resources-readmitted-to-london-stock-exchange/

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