Sunshine Metals (ASX:SHN) is conducting a placement to raise $3 million to expedite mining studies and drilling across four key gold targets at the Ravenswood Consolidated Project in Queensland.
Under the two-tranche placement, shares will be issued at $0.006 to institutional and sophisticated investors. Participants will also receive one free attaching unlisted option for every three new shares subscribed for, exercisable at $0.015 and expire two years from the date of issue.
Canaccord Genuity will act as the sole lead manager for the placement.
Tranche one is expected to be completed on or around 3 April 2025. Tranche two will then be completed on or around 21 May.
Sunshine, which has a market capitalisation of $12.7 million, says the funds will be applied to advanced drilling with the aim of identifying shallow, oxide gold resources for processing at potential, nearby toll-treatment mills during a time of high gold prices.
The company is targeting the Tigertown, Coronation, Liontown, and Plateau prospects. The company will also aim to rapidly evaluate the commercial potential of these assets.
Liontown is considered the most advanced of the shallow gold targets with an inferred resource of 21,000 ounces of gold @ 1.8 grams per tonne gold in oxide and transitional zones.
Further, drilling for metallurgical samples is expected to be completed in April 2025, with the aim of upgrading the inferred resource to an indicated resource.
Once the upgrade is completed, mining studies will be initiated.
Meanwhile, at plateau represents an advanced target with an inferred resource totalling 49,000 ounces @ 2g/t gold. To advance the resource classification, 1,000m of drilling and metallurgical testing are required. Sunshine expects to begin these activities in May 2025.
At Tigertown and Coronation, initial drilling will quickly assess shallow gold potential, and depending on results, additional drilling and preliminary metallurgical studies will take place.
Sunshine Metals is focused on the discovery and development of its portfolio of projects in Queensland considered prospective for primarily copper and gold.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunshine Metals
