Boosting its bank balance to evolve copper-gold discoveries in Ecuador, Sunstone Metals Ltd (ASX:STM) has received firm commitments from institutional and sophisticated investors to take part in a A$12 million raise.
Funders have agreed to raise the cash at 2.6 cents a pop, giving the explorer a sizeable funding runway to prove up its Bramaderos and El Palmar precious and base metal properties.
More than 461 million new shares will hit the boards thanks to the $12 million raise, allotted under Sunstone’s existing listing capacity.
Morgans Corporate acted as lead manager and bookrunner while amicaa was co-lead manager to the placement.
Exploring Bramaderos …
In Ecuador’s south, Sunstone is eager to conduct follow-up work at the Bramaderos Project’s Limon prospect, where recent drilling unveiled a 177-metre, 1.1 g/t gold equivalent hit from surface.
Four follow-up holes have been completed to date and Sunstone expects to secure more assays from the program over the next four weeks.
As the drill bit continues to spin, Sunstone managing director Malcolm Norris said: “The funds from this raising will be used to advance our highly prospective Limon gold-silver target at Bramaderos towards our stated goal of identifying a 10-million-ounce gold district.
“Additional drilling will allow us to build on our existing mineral resources and exploration target,” he explained.
… And El Palmar
Meanwhile, at the El Palmar asset in Ecuador’s north, Sunstone is focused on copper-gold upside at the T2 and T3 targets.
Recent drilling at the precious and base metal project uncovered a porphyry copper system, and while it’s still early days, Sunstone is excited to see the structure take shape.
In a nutshell, the presence of magnetite veins at depth also gives confidence that this system correlates with a large cluster of magnetic bodies at the T3 target, with more drill assays expected over the coming month.
“At El Palmar, further drilling will allow us to define the extent of mineralisation at the promising T3 target, with the ultimate aim of making a significant copper-gold porphyry discovery to add to the discovery already delivered at the T1 target,” Norris said.
“Our goal here is to deliver substantial value growth to shareholders as quickly as possible.”