East Star Resources PLC on Monday said that it has raised gross proceeds of £540,000 via a placing of 36.4 million new shares at 1.5 pence each.

This included a one-for-one warrant at an exercise price of 3p.

The London-based Kazakhstan-focused gold and copper exploration and development company also noted that both its chief executive officer and its largest shareholder participated in the placing.

East Star said the proceeds of the placing would be applied to modelling drill results from the Verkhuba copper deposit, which are expected in the fourth quarter of this year.

The funds will also go towards additional drilling on Verkhuba, as well as on other targets within the Rudny Altai belt licences, which have advanced ‘significantly’ over the recent field season.

Processing and analysing of regional mapping is currently underway, in order to better assess additional targets along the mineral belt.

‘In less than two years, East Star’s prospects have evolved from greenfield exploration to brownfield drilling of strategic and critical metals. The funds raised today from new and existing investors will go towards advancing a potentially game-changing copper deposit at Verkhuba as well as preparing a number of other targets for drill-ready status such as Talovskoye,’ said Chief Executive Officer Alex Walker.

East Star Resources shares were trading 3.5% lower at 1.40 pence each in London on Monday afternoon.

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