Sunstone Metals (ASX:STM) has launched a share placement to raise $5 million to continue growing gold-copper-silver discoveries across its portfolio of projects in Ecuador.
The $46.22 million market capitalisation company plans to use the funds for exploration work at its Bramaderos and El Palmar projects to confirm the potential of its existing discoveries and further demonstrate the potential value of the discoveries.
Morgans Corporate acted as lead manager and bookrunner to the placement.
At Bramaderos, Sunstone will focus on the ‘large, high-grade’ gold-silver Limon target, with surface exploration to expand the scale of the opportunity and define further drill targets.
Meanwhile, at the El Palmar project, the company will conduct exploration to expand and define the near-surface ‘high-grade’ gold-silver opportunity and strengthen its porphyry gold-copper targets.
The company will also conduct exploration at Verde Chico to follow up on historical ‘high-grade’ gold from surface.
Under the placement, Sunstone will issue about 418.6 million new shares at $0.012 per share, with 12.9 million shares being issued to company directors subject to shareholder approval.
Directors and management are committed to participating in the placement for a total of $170,000.
Sunstone Metals is an ASX-listed explorer focused on advancing its portfolio of projects in Ecuador.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunstone Metals
