- Sunstone Metals (STM) gets firm commitments to raise about $20 million via a share placement
- The funds will go towards exploration drilling at its Bramaderos and El Parmar projects in Ecuador
- Sunstone has subsequently launched a $4 million share purchase plan (SPP) to further bolster exploration efforts at the gold-copper discoveries
- At the completion of the placement and the SPP, the company will have approximately $30 million in cash and around $2.5 million in tradable equities
- STM shares hold steady at seven cents
Sunstone Metals (STM) has received firm commitments to raise approximately $20 million via a share placement.
Under the placement, the company will issue 298,507,463 new shares at an issue price of 6.7 cents each.
Sunstone has also launched a $4 million share purchase plan (SPP) to fund exploration drilling at the Bramaderos and El Parmar projects in Ecuador.
The SPP is open to eligible shareholders in Australia and New Zealand to subscribe for shares at an issue price at 6.7 cents, the same issue price as the placement.
At the completion of the placement and the SPP, the company will have approximately $30 million in cash and around $2.5 million in tradable equities.
“The funds from this raising will ensure we can conduct multiple drilling programs and other exploration work in parallel with the aim of adding substantial value as fast as possible for shareholders,” Managing Director Malcolm Norris said.
At the Bramaderos gold-copper project, the company said there are three diamond rigs drilling at the Alba and Brama targets.
Drilling at Alba is following up strong gold-copper porphyry assays from the initial four drill holes while infill and extension drilling are underway to provide data for an initial mineral resource estimate (MRE) at Brama, expected in late 2022.
The next batch of assays from Alba are expected in late April and an electrical geophysical survey has been completed.
At El Palmar, drilling is continuing with one rig while an electrical geophysical survey is being undertaken with improvements implemented to processing of drill core to allow for faster movement of core through Sunstone’s facility and into the laboratory.
The next batch of assays results are expected in late April or early May and results from the geophysical survey, which will assist with improved targeting of the deep magnetic targets, are also expected in late April.
Sunstone has not disclosed any other dates for the public.
STM shares held steady at seven cents as of 1:35 pm AEST.