Sunrise Resources PLC (LON:SRES) has agreed to raise up to £1mln of new equity.
The company’s broker Peterhouse Capital has arranged a £750,000 placing - with 267.8mln shares being sold at 0.28p - and a further broker offer option could see an additional £250,000 raised at the same placing price.
READ: Sunrise continues permitting progress for CS project
Proceeds are earmarked for the continuing development of the CS Pozzolan-Perlite Project in Nevada, along with initial drill work across the company’s gold and silver projects.
"This fundraising will allow the company to continue the development of its priority CS Project in Nevada following the recent grant of the mine and reclamation permits,” Patrick Cheetham, Sunrise executive chairman said in a statement.
“It will also allow the company to carry out some initial drill testing on its precious metal projects in Nevada as the board is keen to ensure that it's gold and silver project portfolio delivers value for shareholders in the current strong market conditions for precious metals."
Sunrise noted that the ‘broker option offer’ funding is being used primarily to facilitate the participation by existing shareholders of the company who could not participate in the placing – and added that the broker offer shares are not being made available to the public.
Cheetham added: "The company recognises that its share price on AIM has increased since the placing was initiated and that the placing price is now at a significant discount to the most recent closing bid price for the company's ordinary shares on AIM.
“Consequently, the company is pleased to have granted the broker option as a mechanism for existing shareholders in the company to apply for shares at the placing price."
The company has invited shareholders to register interest with Peterhouse, via their existing stockbroker or financial advisor by no later than 5:00pm on August 26.