Lachlan Star’s share price climbs on Klaus Eckhof board appointment
Lachlan Star has appointed former AVZ Minerals executive chairman Klaus Eckhof to its board.
Lachlan Star’s (ASX: LSA) share price climbed more than 60% in trade this morning on news it has appointed former AVZ Minerals (ASX: AVZ) executive chairman Klaus Eckhof to its board.
Mr Eckhof stepped down from AVZ in late June after AVZ reported its largest spodumene intersection found to-date.
The former AVZ chairman has now joined Lachlan Star as an executive director and will be granted 80 million performance rights in stages, subject to shareholder approvals.
Under the performance rights agreement, Mr Eckhof will receive his first 20 million shares once Lachlan Star’s share price hits a 20-day volume weighted average price of A$0.025.
His second 20 million performance rights issue will occur once Lachlan Star’s share price jumps to A$0.04, with the third and fourth 20 million allocations to be triggered once the company’s share price hits A$0.05 and A$0.065, respectively.
Lachlan Star emerged from external administration in late May after raising A$3.3 million to explore the Princhester magnesite project in Queensland.
Princhester magnesite project
Princhester includes two granted mining leases near Rockhampton and close to region’s Bruce Highway and railway.
Previous exploration at Princhester has led to an exploration target of up to 5.44 million tonnes grading 47% magnesite.
Magnesite market
Magnesite is used as a feedstock to produce dead-burned magnesia and in refractories.
The ore can also be processed into a caustic calcined magnesia which is used as a food supplement in agribusiness and fertilisers, as well as a filler in paint, paper and plastics.
Additionally, raw magnesite is incorporated in surface coatings, landscaping, ceramics and is exploited for its fire-retardant capabilities.
Hunting for new projects
Lachlan Star is also on the hunt for new project acquisitions, with a portion of the latest capital raising allocated to fund acquisition opportunities.
The company is looking at projects both in Australia and overseas in the mining sector as well as other market segments.
It is believed Mr Eckhof’s experience will assist Lachlan Star in identifying and advancing mineral project opportunities.
By late afternoon trade, Lachlan’s share price was up 42% to A$0.02.