Stelar Metals Raises $2.6M for Maiden Hill of Leaders Tungsten Drilling

Stelar Metals Locks In $2.6 Million to Drill Hill of Leaders Tungsten Project in the NT

Stelar Metals Limited (ASX: SLB) has secured firm commitments to raise $2.6 million through a placement, giving the company funding to begin the first bedrock drilling programme ever completed at its Hill of Leaders Tungsten Project in the Northern Territory. According to the ASX announcement, rig mobilisation is scheduled for August 2026 for a Phase 1 RC drilling programme of approximately 3,000 metres across three sections.

The placement matters because Hill of Leaders is being tested at depth for the first time, despite tungsten first being discovered there in 1951 and a history of small-scale production. For investors, that places the upcoming work in the category of a maiden discovery test rather than a routine follow-up drilling campaign.

A First Drill Test Beneath a Long-Known Tungsten Field

According to the announcement, the Hill of Leaders tungsten system includes tungsten-bearing quartz veins and greisen mapped over more than 2 kilometres of exposed strike and up to 200 metres of corridor width. In simpler terms, mineralised rock has already been identified over a substantial surface footprint, and Stelar is now preparing to test whether that mineralisation continues below surface.

The company stated that no bedrock drilling has previously been completed beneath the mineralised vein field. That gives the planned RC drilling programme clear significance. It is intended to test the depth extent, continuity and grade of the system, which are key factors in evaluating whether surface mineralisation has scale potential below ground.

The speed of the current programme also stands out. Stelar acquired the project in May 2026, and management has set out a plan to mobilise a rig within three months of acquisition.

What Did the Executive Chair Say?

"The successful completion of this $2.6 million Placement reflects the market's enthusiasm for the genuine first-mover discovery opportunity we have on our hands at the Hill of Leaders Tungsten Project," said Stephen Biggins, Executive Chair.

"Our aim is to be mobilising a rig for a maiden drill programme within just three months of acquiring the project, which is a testament to the team's focus and early-stage exploration success to date."

For investors, that timeline suggests Stelar is prioritising rapid testing of what it sees as a high-conviction exploration target.

Placement Details and Terms

The capital raising was completed via a single tranche placement to new and existing sophisticated and professional investors. According to the ASX release, the company will issue 13,141,421 ordinary shares at $0.20 per share, raising approximately $2.6 million before costs.

The shares are being issued under the company's existing placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A. Stelar also stated that the new shares will rank equally with existing ordinary shares from allotment.

The pricing metrics disclosed in the announcement are set out below.

For existing shareholders, the discount is relevant because it shows the terms required to attract demand for the raise. Furthermore, for prospective investors, the more important issue may be that the company has now secured funding ahead of drilling rather than needing to return to market immediately before the programme starts.

Where the Funds Are Being Directed

Stelar said placement proceeds will be used across four areas:

1. Field activities and drilling at Hill of Leaders
2. Expenditure on other exploration projects
3. Working capital
4. Costs of the offer

The primary focus is clearly Hill of Leaders. In the announcement, the company directly linked the raising to the upcoming Phase 1 RC programme scheduled for August 2026. That alignment between financing and near-term exploration activity is often important for junior explorers, as it reduces uncertainty around whether a planned catalyst is fully funded.

The broader allocation to other exploration projects and working capital also suggests the company intends to maintain portfolio activity while advancing its lead tungsten asset.

What RC Drilling Means and Why It Matters at Hill of Leaders

What Is RC Drilling?

For non-specialist investors, RC drilling refers to Reverse Circulation drilling, a common exploration technique used to collect rock samples from below surface. Air is used to bring crushed rock chips up through the drill rods, allowing geologists to examine what rock types and minerals are present at different depths.

RC drilling is widely used in early-stage resource exploration because it is generally faster and less expensive than diamond drilling. That makes it suitable when a company's objective is to test multiple sections of a mineralised system and build an initial picture of subsurface continuity.

At Hill of Leaders, the Phase 1 RC programme is designed to answer a basic but important question: does the tungsten-bearing vein system mapped at surface continue at depth in a way that could justify further drilling?

Key Terms Worth Understanding

A few related terms from the announcement are worth clarifying:

• Strike: the length of the mineralised trend across the surface
• Grade: the amount of metal contained in the rock
• Continuity: whether the mineralisation remains connected and consistent between drill holes
• Quartz vein: a body of quartz that fills fractures in rock and can host metals
• Greisen: an altered rock commonly associated with tungsten and tin mineralisation

Why does this matter to investors? Because the first pass at depth can materially change a project's value outlook. If drilling indicates that mineralisation continues below surface with meaningful grade and width, the project may justify larger follow-up programmes. If continuity is weak, however, the exploration thesis may need to be revised.

Why Tungsten Is Attracting More Market Attention

The company's announcement also pointed to a supportive backdrop in the tungsten market. Stelar said the maiden drill programme will begin during a period of tight structural global tungsten supply, driven by Chinese export restrictions and increased Western efforts to secure critical minerals supply chains.

Tungsten is used in several industrial applications because of its hardness, density and heat resistance. Common end uses include:

• Cutting tools and machining equipment
• Defence applications
• Aerospace components
• Electronics and semiconductors
• Specialty metal alloys

This market setting adds important context to the timing of Stelar's drill programme. It does not confirm exploration success, and the ASX announcement does not suggest any project-specific policy support. However, it does indicate that if meaningful tungsten mineralisation is confirmed, the project would be entering a market where non-Chinese supply is receiving considerably closer attention.

For investors, commodity context matters because discovery value is often influenced not only by geology, but also by demand, supply concentration and jurisdiction.

Why Investors Are Watching This Drilling Programme

The investment case outlined by the announcement centres on a small number of clear points.

First, this is a maiden bedrock drilling programme in a field with a long history but no previous subsurface test beneath the known vein swarms. That means results are likely to provide genuinely new geological information.

Second, the company is not drilling a conceptual greenfields target with no surface evidence. According to Stelar, the target area has already been mapped over more than 2 kilometres of strike and up to 200 metres in width, giving the drill programme a defined geological basis.

Third, funding appears in place ahead of execution. With placement commitments secured and settlement due on 10 August 2026, the company is well positioned to move from financing to field activity on a short timeline.

The key investor factors can be summarised as follows:

That combination does not reduce exploration risk, but it does create a defined near-term news flow cycle with a clear technical objective.

What the Market Is Likely to Watch Next

The next milestone is the planned August 2026 rig mobilisation. Once drilling begins, investor focus is likely to shift to the sequence of operational updates and, ultimately, assay results.

Key points to monitor include:

• Commencement of the Phase 1 RC programme
• Progress across the three planned drill sections
• Sample assay results
• Management interpretation of grade and continuity at depth
• Any decision on follow-up drilling

Because the programme covers multiple sections, news may arrive in stages rather than in a single update. That can, in turn, create several points of market attention over the course of the campaign.

Why This Placement Is Important for Stelar Metals

This ASX update positions Stelar Metals as a junior explorer moving quickly from acquisition to field testing at a tungsten project with a defined surface footprint and no previous bedrock drilling. The company has raised $2.6 million, set a near-term drilling schedule, and linked the placement directly to an August 2026 exploration programme at Hill of Leaders.

For investors, the central question is straightforward. Can the tungsten-bearing quartz vein and greisen system identified at surface continue at depth with sufficient grade and continuity to support a larger exploration story? According to the company, the Phase 1 RC programme is designed to provide the first direct evidence on that point.

With funding committed, drilling scheduled, and a commodity backdrop that has increased interest in Western tungsten supply, Hill of Leaders has become a project to monitor closely over the coming months.

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