The initial placement consisted of 7.5 million units at a price of 10 cents each, for proceeds of $750,000.
Due to increased demand, however, the miner has oversubscribed by 1.75 million units, for total proceeds of $925,000.
Closing of the offering, for which Eagle Star paid finder's fees, is still subject to TSX Venture Exchange approval.
Also Wednesday, the company said it has signed a contract with Geomina Sondagens, a private Brazilian drilling company located in Tocantins State.
Eagle Star plans to initiate a 500 metre scout drilling program consisting of 16 holes at an average depth of 30 metres on its Bomfim Agro-mineral project, starting next month.
The company acquired the Bomfim project at the end of June, which is located 20 kilometres away from MbAC Fertilizers' (TSE:MBC) Itafos Arraias property.
Eagle Star believes that Bomfim is located along the same phosphate mineralized trend in which the Itafos mine is situated. The company’s COO, director and expert on phosphate, Jose Eloi Guimares Campos, is much of the reason for this strong belief.
Campos' direct involvement with the Itafos technical study and geological modeling gives him the confidence to say that Eagle Star is indeed sitting on a very similar geological model to that of Itafos.
Eagle Star said the region is considered to be the new phosphate belt of Brazil and has seen many majors claiming in this area such as MBAC, Vale (NYSE:VALE), Votorantim and Bungee.
All exploration permits and licenses are already in place for Bomfim’s 30,922 hectares.
An aggressive exploration program has been outlined, with the aim to define an NI 43-101 measured and indicated resource as soon as possible.
The main mineralization at Bomfim hosts outcropping phosphorite lenses, from where Eagle Star has sample results of up to 28% P2O5.
Eagle Star has been working to bulk up its position as a provider of agro-minerals ever since announcing a strategic shift in focus to Brazil phosphate exploration in February.
Brazil is one of the leading agrarian countries in the world. In addition to being the fourth largest consumer of agro-minerals, it is the second largest world importer of phosphate, a business that generates around $1.1 billion in sales annually for the country.