Sunstone Metals Ltd (ASX:STM) has signed a definitive agreement to sell its 83.6% stake in its Finland lithium project, including the Kietyönmäki lithium occurrence, to United Lithium Corp, a Canadian securities exchange-listed company.
This definitive agreement follows a letter of intent signed in May 2021.
Consideration for the sale includes C$420,000 in cash and C$420,000 in shares in United Lithium, which Sunstone estimates converts to A$920,000 in value. Closing is expected in the coming weeks.
Retaining exposure to lithium upside
Sunstone Metals managing director Malcolm Norris said: “We are pleased to be concluding this transaction with United Lithium.
“This transaction gives us additional cash for our Ecuadorian gold-copper focused exploration campaign while enabling us to retain exposure to the upside offered by the United Lithium assets in Scandinavia.”
The sale follows the discovery of multiple gold-copper clusters at Sunstone’s El Palmar Project, in which it is acquiring 100% ownership. Historical surface rock chip sampling at the site previously returned 60 metres of 0.33 g/t gold and 0.12% copper.
About Sunstone Metals
Sunstone has an advanced portfolio of exploration and development projects in Ecuador and Scandinavia. The portfolio comprises:
- The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest with TSXV listed Cornerstone Capital Resources holding 12.5%. The Bramaderos project is in Loja province, southern Ecuador, and is highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems. Historical exploration results from drilling together with recent exploration by Sunstone and joint venture partner Cornerstone Capital Resources indicate multiple fertile mineralised systems with significant discovery potential.
- The El Palmar Copper-Gold Project where Sunstone holds 51% of the highly prospective 800-hectare gold-copper porphyry project in Ecuador and can acquire 100% through a Staged Acquisition Agreement. The El Palmar project is in Imbabura province, northern Ecuador, within the same geological belt that includes the giant Alpala and Llurimagua porphyry copper-gold and copper-molybdenum deposits.
- Sunstone has a large equity interest in Stockholm listed Copperstone Resources (COPP-B.ST) following the sale of the Viscaria Copper project to Copperstone in 2019.
- The Finland lithium project includes the Kietyönmäki lithium prospect. Drilling by Sunstone has delivered 24.2 metres at 1.4% lithium oxide (Li2O) in a spodumene-bearing pegmatite. The project is a JV with Nortec Minerals. As per this announcement, a definitive agreement has been signed to sell the project.