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Sunstone Metals (ASX:STM) in a halt ahead of cap raise

The Market Online Deal Room
ASX:STM      MCAP $44.05M
11 April 2022 16:44 (AEST)

Sampling at El Palmar. Source: Sunstone Metals

Sunstone Metals (STM) has entered a trading halt prior to releasing an announcement regarding a capital raising.

The ASX-listed mineral exploration company hasn’t indicated how much it plans to raise nor how the money will be spent once received.

Towards the end of March, Sunstone released an investor presentation which highlighted its strategy, project portfolio as well as what’s in the pipeline for the 2022 calendar year.

The junior explorer is undertaking a two-rig drilling program at the Bramaderos project in southern Ecuador which has been yielding high-grade gold and copper results.

Sunstone said it would borrow an extra drill rig from the El Palmar project in early April to expedite the Bramaderos program where it’s targeting a mineral resource estimate for later in the year.

In addition, the company is progressing soil sampling, mapping and drilling at the El Palmar project in northern Ecuador.

Sunstone owns a 70 per cent stake in El Palmar which can be increased to a 100 per cent interest through a staged acquisition agreement by funding exploration.

At this stage, Sunstone Metals expects the trading halt will be lifted on April 13, by which time the capital raise details are likely to be released.

Company shares last traded at seven cents on Friday, April 8.

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