Sunstone Metals Ltd (ASX:STM) has received firm commitments for A$5.024 million via a share placement at 1.2 cents per share to existing institutional and sophisticated shareholders as well as new investors.
Proceeds from the placement will be used to fund targeted exploration at the Bramaderos and El Palmar projects in Ecuador, to confirm the potential of existing discoveries and further demonstrate the potential value of the discoveries to financial markets and strategic partners.
The company is focusing on the development of the Limon epithermal gold-silver discovery, which already possesses a considerable exploration target, highlighting ‘immense’ potential for a sizeable open pit.
The placement was also well-supported by the directors and management of the company, who are contributing a total of A$170,000.
Placement summary
The placement comprises 418,666,667 new shares, with 12,916,667 shares being issued to directors subject to shareholder approval, and 405,750,000 new shares to be issued within the company’s available capacity under ASX Listing Rule 7.1.
Morgans Corporate Limited acted as lead manager and bookrunner to the placement.
Forward plan
At Bramaderos in southern Ecuador, the focus will be on the large, high-grade gold-silver Limon target with surface exploration to expand the scale of the opportunity and define further drill targets.
At El Palmar in northern Ecuador, exploration is also expanding and defining the near-surface high-grade gold-silver opportunity and strengthening the near-surface porphyry gold-copper targets.
At Verde Chico to the west of El Palmar, exploration has kicked off and is following up historical high-grade gold from the surface.