Sunstone Metals Accelerates Bramaderos Scoping Study Following AU$8 Million Capital Raising
Source: Kapitales Research
Highlights
Sunstone Metals (ASX: STM) completes AU$8 million placement at AU$0.019 per share.
Directors plan to contribute AU$80,000 to the placement, provided shareholders approve their participation.
Funding allocated to the Bramaderos Scoping Study, drilling to grow the 4.8Moz AuEq resource, concession fees and working capital.
Placement comprises 421,052,632 new shares.
Offer price represents a 13.6% discount to the prior close and up to 20% discount to recent VWAPs.
Capital Raise to Advance Major Gold-Copper Development
Sunstone Metals has secured AU$8 million via a placement supported by existing institutional investors and new shareholders. The raise adds momentum to the Company’s development activities at the Bramaderos Gold-Copper Project in southern Ecuador, where a Scoping Study is underway for the 3.6Moz AuEq Brama–Alba–Melonal resource cluster. Funds will also support ongoing drilling to expand the current 4.8Moz AuEq global inventory, alongside concession fees and general corporate needs.
The placement price of 1.9 cents reflects a discount to recent trading levels but allowed for strong institutional participation. The Board has indicated it intends to invest AU$80,000, with the allocation contingent on shareholder endorsement.
Corporate Discussions Progress in Parallel
Sunstone continues to evaluate strategic pathways to unlock value across its two large-scale Ecuadorian assets. Confidential negotiations with multiple parties remain active. Draft transaction documents have been shared, and key commercial terms are still being refined. While engagement is ongoing, no agreement has been finalised.
Separately, the Scoping Study at Bramaderos is progressing, with updated geological models, mine design work and development scenarios being advanced as part of the Company’s broader strategic review.
Placement Structure and Pricing
The placement will result in the issue of 421 million new shares, utilising Sunstone’s available Listing Rule 7.1 capacity. Shares will rank equally with existing securities. The offer price represented a:
The issue price represented a 13.6% reduction relative to the previous market close.
It also represented an 18.8% discount when compared with the 5-day VWAP.
Relative to the 10-day VWAP, the pricing implied a 20% discount.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Sunstone Metals Accelerates Bramaderos Scoping Study Following AU$8 Million Capital Raising
Source: Kapitales Research
Highlights
Capital Raise to Advance Major Gold-Copper Development
Sunstone Metals has secured AU$8 million via a placement supported by existing institutional investors and new shareholders. The raise adds momentum to the Company’s development activities at the Bramaderos Gold-Copper Project in southern Ecuador, where a Scoping Study is underway for the 3.6Moz AuEq Brama–Alba–Melonal resource cluster. Funds will also support ongoing drilling to expand the current 4.8Moz AuEq global inventory, alongside concession fees and general corporate needs.
The placement price of 1.9 cents reflects a discount to recent trading levels but allowed for strong institutional participation. The Board has indicated it intends to invest AU$80,000, with the allocation contingent on shareholder endorsement.
Corporate Discussions Progress in Parallel
Sunstone continues to evaluate strategic pathways to unlock value across its two large-scale Ecuadorian assets. Confidential negotiations with multiple parties remain active. Draft transaction documents have been shared, and key commercial terms are still being refined. While engagement is ongoing, no agreement has been finalised.
Separately, the Scoping Study at Bramaderos is progressing, with updated geological models, mine design work and development scenarios being advanced as part of the Company’s broader strategic review.
Placement Structure and Pricing
The placement will result in the issue of 421 million new shares, utilising Sunstone’s available Listing Rule 7.1 capacity. Shares will rank equally with existing securities. The offer price represented a:
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au