Sunstone Metals Ltd has raised A$4 million (before costs of A$240,000) through an oversubscribed share placement to institutional, sophisticated, and new investors. The placement was priced at 0.5 cents (A$0.005) per share and represents discounts of 16.7% to the last closing price, 19.3% to the 10-day VWAP, and 18.0% to the 15-day VWAP as of 25 March 2025.
The placement will comprise 800 million new shares.
Proceeds will support working capital as the company advances corporate discussions aimed at unlocking value from its substantial gold and copper assets. Sunstone has been actively pursuing strategic partnerships, with multiple parties accessing its data room and conducting site visits.
Sunstone Metals' flagship assets.
“These discussions have progressed to the point where, in the short term, a confidential and incomplete non-binding indicative offer could be finalised,” the company stated. A confirmatory due diligence phase is expected to follow. Sunstone confirmed it is well advanced in evaluating the proposal and assessing associated risks.
Sunstone Metals in advanced discussions over strategic initiatives
Sunstone is actively engaged in corporate discussions with multiple parties regarding potential strategic initiatives, highlighted by its assets, people, location and commodities.
Several counterparties have signed confidentiality agreements, accessed the company’s data room, and completed site visits. These discussions involve a range of opportunities and transaction structures, with some at more advanced stages than others. Potential outcomes under consideration include corporate-level transactions, project-level joint venture earn-ins, and combinations with near-term development assets.
One transaction has progressed to a stage where a non-binding indicative proposal could be finalised shortly, subject to confirmatory due diligence. Sunstone is undertaking its own due diligence on the proposal and associated risks. In parallel, it is also advancing discussions regarding a separate business combination involving a privately held, near-term gold development asset, potentially complementing Sunstone’s two large-scale gold-copper projects in Ecuador.
At the Bramaderos Project in southern Ecuador (Sunstone 87.5%), drilling has defined several porphyry and epithermal deposits, resulting in an inaugural Mineral Resource Estimate (MRE) of 2.7 million ounces gold equivalent (AuEq) and an additional Exploration Target of 3.3 to 8.6 million ounces AuEq.
At the El Palmar Project in northern Ecuador (Sunstone 74.5% up to 100%), the Company reported a maiden MRE of 64 million tonnes at 0.60 grams per tonne for 1.2 million ounces AuEq in October 2024, alongside a substantial Exploration Target of 15 to 45 million ounces AuEq.
There is no certainty any proposal will progress to a binding agreement.
Sunstone will update the market as news comes to hand.