Sunstone Metals Raising Up To A$6.3M For Gold And Copper In Ecuador

Sunstone Metals Ltd (ASX: STM) is raising up to A$6.3 million to continue growing its gold-copper-silver discoveries in Ecuador.

The company has already received firm commitments to raise A$2 million via an oversubscribed share placement at A$0.011 per share.

New and existing institutional, professional and sophisticated investors strongly supported the placement.

Read: Sunstone Metals New MD Patrick Duffy Tells JustStocks Video Limon Project Has Potential To Be 150k oz Gold Mining Centre

Furthermore, Sunstone’s board of directors intend to participate in the placement by subscribing to shares worth A$150,000.

In addition to the placement, Sunstone will undertake a rights issue to raise up to A$4.3 million from existing shareholders at A$0.011 per share.

Limon gold-silver epithermal discovery

Proceeds from the capital raising will be used to start drilling at the Limon gold-silver epithermal discovery within the company’s Bramaderos concession.

The Bramaderos gold-copper project in southern Ecuador is highly prospective for the discovery of large porphyry gold-copper systems.

Sunstone believes the Limon gold-silver epithermal discovery has significant upside based on the extent of the known mineralisation.

Significant mineralisation from surface

Sunstone Managing Director Patrick Duffy said: “The outstanding drilling and trenching results have already established that Limon is an exceptional discovery with huge potential upside.

“To have this amount of known gold and silver mineralisation from surface, which remains open, and with numerous new areas of mineralisation outlined through trenching, puts us in a very strong position in the lead up to a maiden resource.”

El Palmar and Verde Chico

Sunstone will also use the funds for further ongoing exploration activities at the El Palmar and Verde Chico projects in Ecuador.

The projects are located within the same geological belt that includes the giant Alpala, Tandayama-America and Llurimagua porphyry copper-gold and copper-molybdenum deposits.

 

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