Sunstone Metals Limited (ASX:STM) has received firm commitments for A$12M via a share placement to existing institutional and sophisticated shareholders and new institutional investors.
The proceeds of the Placement will be used to fund exploration at the Bramaderos gold-copper project in southern Ecuador, the El Palmar gold-copper project in Northern Ecuador and for working capital.
At Bramaderos, drilling will focus on the Limon target where hole LMDD017 returned 177m at 1.1g/t AuEq from surface. Follow-up holes LMDD021, 22, 23, and 24 have been completed and assays are expected to be returned over the next four weeks. Drilling is ongoing.
At El Palmar, drilling is continuing at the T2/T3 target where drilling has intersected a porphyry copper system with chalcopyrite, transitional potassic alteration, copper-sulphide-bearing A vein and B vein stockworks, and anomalous copper readings in pXRF results.
The presence of magnetite veins at depth also give confidence that this system correlates with a large cluster of magnetic bodies at the T3 target. Assays are expected to be returned from EPDD026 in batches over the next four weeks. Follow-up drilling is ongoing.
“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 10Moz gold district. Additional drilling will allow us to build on our existing mineral resources and exploration target,” Managing Director, Malcolm Norris, said.
“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.
“Our goal here is to deliver substantial value growth to shareholders as quickly as possible.”
Morgans Corporate Limited acted as Lead Manager and Bookrunner and amicaa was Co-Lead Manager to the Placement.
For further information please visit: https://www.sunstonemetals.com.au/
