REG - East Star Resources - £1.8M Strategic Investment by Endeavour Mining

East Star ResourcesAnnouncement

01/12/2025 08:45

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RNS Number : 6540J  East Star Resources PLC  01 December 2025

1 December 2025

 

East Star Resources Plc

 

("East Star" or the "Company")

 

£1.8M Strategic Investment in East Star by Endeavour Mining

 

East Star Resources Plc (LSE: EST), the Kazakhstan-focused gold and base
metals explorer, is pleased to announce a £1,807,600 strategic investment in
the Company by Endeavour Mining PLC (LSE: EDV/TSX: EDV) ("Endeavour"), one of
the world's leading gold producers and a constituent of the FTSE 100 Index.

 

Endeavour has agreed with East Star that it will subscribe for 4,200,000 new
ordinary shares in the Company ("Endeavour Subscription Shares") at an issue
price of £0.023 per share (the "Issue Price"), raising £96,600 (the
"Endeavour Subscription"). The Endeavour Subscription will be accompanied by
the issue of a £1,711,000 unsecured convertible loan note (the "CLN"),
convertible at £0.023 per share. Following the Endeavour Subscription, and
upon full conversion of the CLN, Endeavour will hold 15% of East Star's
enlarged issued share capital.

 

Convertible Loan Note Summary

 

·    CLN converts into 74,391,304 ordinary shares at a conversion price of
£0.023 per share being a 7% premium to the last traded price on 28 November
2025.

 

·    CLN to convert, inter alia, upon the Company obtaining all relevant
authorities required to issue, allot and admit the CLN conversion shares

 

·    CLN is interest-free save for in limited circumstances where, if not
converted within 12 months, it would attract interest

 

Use of Proceeds

 

The proceeds from the Endeavour Subscription and the CLN shall be used
primarily to fund the Company's exploration programmes in the East Region of
Kazakhstan and to assess new opportunities. In addition, funds will cover
general working capital.

 

Director Representative

 

Endeavour will be entitled, to appoint one director to the Board of East Star,
such for so long as it holds at least 10% of the Company's issued share
capital. This includes any shares which would be held following full
conversion of any outstanding loan notes under the terms of Convertible Loan
Note. In the event that Endeavour ceases to hold at least 10% of East Star's
issued share capital, any director appointed by Endeavour may, though not
obliged to, continue in office until the next annual general meeting of the
Company. A further announcement will be made once Endeavour's director
representative has been appointed.

 

First Offer and Top-Up Rights
So long as Endeavour holds at least ten (10) per cent. in nominal value of Shares held by it or would be held by it following the conversion of any Convertible Loan Notes, it will have both the right to first subscription, and the right to maintain its shareholding immediately prior to the new share issue.

 

Alex Walker, CEO of East Star, commented:

 

"We're very pleased to have secured this strategic investment from Endeavour
and are delighted to welcome them as a shareholder in East Star. This
strategic investment builds on our recent $25 million joint venture agreement
with Endeavour for gold exploration in Kazakhstan. Through a combination of
exploration joint venture and equity funding, East Star is well positioned to
accelerate both its gold and copper strategies; to expand and advance existing
deposits and discover new ones.

 

Upon conversion of the CLN, East Star will be privileged to have Endeavour, a
top 10 global gold producer with one of the best discovery track records in
the sector, as its largest shareholder in addition to being a gold exploration
partner. It's a reflection of both the in-country exploration capabilities
East Star has developed and the phenomenal exploration opportunity that exists
in Kazakhstan. This places the Company in a strong and incredibly exciting
position going into 2026 - now is the time to make discoveries!"

 

Admission and Total Voting Rights

An application has been made for the 4,200,000 Endeavour Subscription Shares,
which will rank pari passu with the existing ordinary shares in issue, to be
admitted to trading on the Main Market of the London Stock Exchange and to
listing to the equity shares (transition) category of the FCA's Official List
("Admission"). Admission is expected to become effective at 8 a.m. on or
around 8 December 2025.

 

Upon Admission, the Company's issued ordinary share capital will consist of
449,584,535 Ordinary Shares with one voting right each. The Company does not
hold any ordinary shares in treasury. Therefore, from Admission the total
number of ordinary shares and voting rights in the Company will be
449,584,535. With effect from Admission, this figure may be used by
Shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the Company under the FCA's Disclosure Guidance
and Transparency Rules.

 

Contacts:

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

 

SI Capital (Corporate Broker)

Nick Emerson

Tel: +44 (0)1483 413 500

 

Vigo Consulting (Investor Relations)

Ben Simons / Peter Jacob

Tel: +44 (0)20 7390 0234

 

About East Star Resources Plc

 

East Star Resources is focused on the discovery and development of copper and
gold in Kazakhstan. The Company is pursuing multiple exploration strategies
including:

 

·    Volcanogenic massive sulphide (VMS) exploration, with a maiden JORC
MRE of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead, in an
infrastructure-rich region, amenable to a low capex development

·    A 2(nd) VMS Exploration Target with up to 23Mt @ 2.4% copper
equivalent in the same region

·    $25 million+ strategic gold exploration joint venture with Endeavour
Mining

·    Tier 1 potential copper porphyry targets in a known copper porphyry
belt

 

Visit our website:

www.eaststarplc.com

 

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/east-star-resources/
(https://www.linkedin.com/company/east-star-resources/)

 

X: https://x.com/EastStar_PLC (https://x.com/EastStar_PLC)

 

Subscribe to our email alert service to be notified whenever East Star
releases news:

 

www.eaststarplc.com/newsalerts (http://www.eaststarplc.com/newsalerts)

 

About Endeavour Mining PLC

 

Endeavour Mining is one of the world's senior gold producers and the largest
in West Africa, with operating assets across Senegal, Côte d'Ivoire and
Burkina Faso and a strong portfolio of advanced development projects and
exploration assets.

 

A member of the World Gold Council, Endeavour is committed to the principles
of responsible mining and delivering meaningful value to people and society.
Endeavour is admitted to listing and to trading on the London Stock Exchange
and the Toronto Stock Exchange, under the symbol EDV.

 

The person who arranged for the release of this announcement was Alex Walker,
CEO of the Company.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as defined in UK
MAR) is now considered to be in the public domain.

 

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