Sunshine Metals (ASX:SHN) is conducting a placement to raise $5 million, with its largest shareholder Lion Selection Group (ASX:LSX) participating, as part of its strategy to fund further exploration within the Ravenswood Consolidated Project in Queensland.
Lion Selection Group will invest $1 million in the placement, increasing its investment to 9.2% in the company.
Canaccord Genuity will act as the sole lead manager for the placement and will receive 15 million broker options exercisable at $0.018 with a three-year expiry date.
As part of the placement, investors can subscribe for shares at $0.012. The placement is expected to be completed on or about 8 September 2025.
The funds will be used to rapidly advance drilling and geophysical programs at the Sybil target, as well as a gold study at the Liontown prospect.
Managing Director Damien Keys says a diamond drill rig will mobilise to Sybil with the first program set to begin shortly.
“We will also continue to drive the Liontown gold study,” Keys says.
“Metallurgical testwork, a resource update and preliminary design work are all tabled for September 2025. A diamond drill rig is also turning at Liontown North testing the prospective Liontown horizon.”
Lion Selection Group Managing Director Hedley Widdup adds that the company believes it is a great opportunity for Lion to make a larger investment in Sunshine.
“They are putting some shape around a potential gold opportunity from Liontown and are acting on the opportunity to drill targets at Sybil, which has sat dormant for several decades,” Widdup says.
“All this at a time where the market appears to be recognising and rewarding progress in explorers, especially where high-grade gold is the focus.”
Lion Selection Group is a specialist-listed investment company primarily focused on junior miners.
Sunshine Metals is a gold and copper explorer focused on its portfolio of projects in Queensland, led by the Ravenswood Consolidated Project which lies within a district that has produced over 20 million ounces of gold and 14 million tonnes of volcanic massive sulphide ore.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunshine Metals
