Sunstone Metals Ltd (ASX:STM) has raised $3.8 million to accelerate drilling at its rapidly growing Limon gold-silver discovery in Ecuador.
The funds were secured through a recent institutional share placement and a one-for-nine non-renounceable entitlement offer.
Proceeds to Bramaderos
The proceeds from the fundraising will be allocated primarily to accelerate drilling at the Limon gold-silver epithermal discovery within Sunstone's Bramaderos concession.
Additional funds will support ongoing exploration activities at the Bramaderos, El Palmar and Verde Chico gold-copper projects, as well as to cover corporate running costs and replenish working capital.
The entitlement offer, now closed, raised $1.84 million, complementing the $2 million, before costs, raised through the placement announced on May 3. Both fundraising initiatives were priced at 1.1 cents per share.
The allotment of 167,433,908 new shares under the entitlement offer is scheduled for May 31.
Additionally, the shortfall shares under the offer, totalling 221,527,375, can be placed at the board's discretion within three months of the offer's closing date.
The company anticipates placing these shares at a price no less than the issue price of $0.011 per share.
About Sunstone
Sunstone Metals boasts an advanced portfolio of projects in Ecuador. The company holds an 87.5% interest in the Bramaderos Gold-Copper Project in southern Ecuador's Loja province.
This project is notable for its potential large porphyry gold-copper systems and high-grade epithermal gold systems.
The Brama-Alba porphyry deposit within the Bramaderos concession boasts an initial mineral resource estimate of 156 million tonnes at 0.53 g/t gold equivalent for 2.7 million gold equivalent ounces.
Sunstone also holds a 70% stake in the El Palmar Copper-Gold Project in northern Ecuador's Imbabura province, with an option to acquire 100% through a staged acquisition agreement.
This project is part of a prolific geological belt that includes major deposits such as Alpala and Llurimagua. The company also has a staged acquisition agreement for the nearby Verde Chico Project.