Star launches $5M IPO

STAR Minerals has struck a series of deals, including with Bryah Resources and Bryah’s original parent Australian Vanadium, it believes are sufficient to get it listed, and help fund development of the small Tumblegum South deposit.
Star launches $5M IPO Star launches $5M IPO Star launches $5M IPO Star launches $5M IPO Star launches $5M IPO

Tumblegum South

Haydn Black

Reporter

Star has been crafting its initial public offer for a while, and used the recent Diggers & Dealers gabfest as the perfect period to release a prospectus seeking A$5 million at 20c to fund work on the Tumblegum and West Bryah projects, near Meekatharra, Western Australia. 
 
The initial focus is on the 42,500 ounce at 2.2 grams per tonne Tumblegum South deposit, located just 40km south of Meekatharra, where there are plenty of nearby mills as potential toll treatment destinations if a deal can be done.
 
AVL and Bryah sold out of the tenements at Tumblegum, including a granted mining lease, in the historical Gabanintha mining centre, a mix of for cash and shares in March.
 
Star's founders worked in the area in the early 2010s, and believe the deposit can be extended and upgraded, and developed relatively quickly.
 
The 349sq.km West Bryah project covers an earlier-stage project which is prospective for gold, copper, and other base metals, is about 140km north of Meekatharra. 
 
The Bryah Basin leases are being pulled together from a range of vendors, including Bryah, but the presence of alluvial cover means much of the past work was not effective. 
 
Star believes it is prospective for orogenic-style gold deposits, and base metal VHMS deposits. 
 
Bryah expects to be major shareholder in Star post-listing, and shareholders in Bryah and AVL are able to participate in a $3 million priority offer.
 
Star's board is headed up by geologist Ian Stuart as chairman, the same tole he holds at Bryah.
 
Bryah and AVL technical consultant Ashley Jones and Auric Mining director Stephen Strubel round out the board. 
 
Day to day operations will be run by geologist Greg Almond as CEO.
 
Of the IPO funds, around $2.1 million will be spent over the first two years at Tumblegum, and $800,000 at West Bryah.