Sunstone Metals Ltd (ASX:STM) is out to raise $24 million to support drilling activity across its copper-gold discoveries in Ecuador.
The precious and base metals explorer announced a $20 million placement and a share purchase plan to raise up to $4 million, which will buoy exploration at its Bramaderos project to the south and the El Palmar asset in the north.
Sunstone will use the cash to employ four drill rigs at its copper-gold projects, where exploration continues at Bramaderos’ high-grade Alba porphyry discovery.
Once the raise is finalised, Sunstone expects it will have roughly $30 million in cash and around $2.5 million in tradeable equities.
Adding value through exploration
Sunstone managing director Malcolm Norris said of the raise: “We already have two outstanding porphyry discoveries on our hands with Alba and El Palmar and several other highly prospective targets to test.
“The funds from this raising will ensure we can conduct multiple drilling programs and other exploration work in parallel with the aim of adding substantial value as fast as possible for shareholders.”
Use of funds
Sunstone has already secured firm commitments to complete its $20 million placement at 6.7 cents a share, while eligible shareholders will participate in the share purchase plan at the same issue price.
At Bramaderos, three diamond rigs are already drilling at the Alba and Brama copper-gold targets.
Current work at Alba is following up strong porphyry assays from the company’s first four drill holes, and the next batch of assays are expected in late April.
Meanwhile, infill and extension drilling is underway at Brama to provide data for an initial mineral resource estimate, expected in late 2022.
An electrical geophysical survey has been completed at Bramaderos’ Alba and Limon prospects, and strong targets have been identified for follow-up drilling.
To the north at El Palmar, one rig is turning the soil while an electrical geophysical survey takes place.
The next batch of assays from the copper-gold discovery is expected in late April or early May.
Results from a geophysical survey, which will help Sunstone pinpoint El Palmar’s deep magnetic targets, are also expected in late April.