Estrella Resources Limited (ASX: ESR) has entered into an option underwriting agreement with Lightview Asset Pty Ltd to partially underwrite the exercise of its existing quoted options. Estrella Resources is a company focused on the exploration and development of nickel and base metal projects in Western Australia. The listed options, trading under the code ESROB, are exercisable at $0.018 each and expire on 13 December 2026.
Under the terms of the Underwriting Agreement, Lightview Asset will underwrite the exercise of 111,111,111 options, representing an underwritten amount of $2,000,000 before costs. This involves Lightview Asset subscribing or procuring subscriptions for the number of shares equal to the number of underwritten options not exercised by the expiry date, known as the Shortfall Shares.
Lightview Asset is not a related party of Estrella Resources. For its services, Lightview Asset will receive a fee of 6% (excluding GST) of the final underwritten amount. The Underwriting Agreement contains standard commercial terms and includes market-standard termination events as detailed in Appendix 1 of the announcement.
Any Shortfall Shares issued to the underwriters are expected to be issued in accordance with ASX Listing Rule 7.2 (Exception 10). This means they will not require shareholder approval, nor will they count toward the company’s placement capacity under ASX Listing Rule 7.1. The key terms of the binding Underwriting Agreement have been summarised by the company in its ASX announcement.
