Winners and Losers: Record week for SA miner in stellar deal
A South Australian mining company saw a record number of shares change hands last week after announcing a critical minerals deal.
Wayville-based Stelar Metals saw a record 18 million shares traded last Wednesday after announcing a potential acquisition of a tungsten mining project called Hill of Leaders in the Northern Territory.
The deal – an earn-in agreement with the owner F&H Borthers Metals – gives the company the option to buy 100 per cent of the business.
It paid $80,000 in cash and issued three million Stelar Metals shares for the deal. If it goes ahead with the purchase, it will spend a further $450,000 or another three million shares to buy the company.
It gives the critical minerals company coverage over tungsten – a high-performance metal used in defence, electrification, mining and semiconductors.
The company said tungsten prices had surged over the last 12 months, with executive chair Stephen Biggins saying the company knows “what it takes to identify quality critical minerals projects early and unlock substantial value”.
“Tungsten is one of the most strategically important critical minerals in the world right now, with prices surging nearly 900 per cent in twelve months as Western governments move to de-couple from Chinese supply chains,” he said.
“Hill of Leaders has genuine discovery potential of scale, and we are moving quickly to advance it.”
Australian shares generally fell for the fourth week in the past five as a below-par trading update from Commonwealth Bank coincided with the federal budget.
Banking and financial stocks were under pressure due to proposed changes to negative gearing taxation laws.
Stay informed, daily
Miners BHP and Rio Tinto both hit new all-time highs, while in SA, Iron Road, Havilah Resources and Aerometrex were Winners.
1414 Degrees also made it into the top five, rising 40 per cent over the trading week after announcing it was establishing a drone division.
The full list of Winners and Losers for the week ended May 15:
Data via Baker Young Limited analysts.
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
