Sunstone Metals (ASX:STM) paused ahead of cap increase – The Market Herald
- Sunstone Metals (STM) enters trading pause ahead of fundraising proposal
- The junior minerals explorer did not say how much he plans to raise or how the funds will be spent, but he is undertaking drilling and fieldwork activities in his projects in Ecuador.
- A third rig has just been mobilized for the Bramaderos project where a first mineral resource estimate is scheduled for later this year
- Additionally, sampling, mapping and drilling are underway at the El Palmar project
- Sunstone expects to exit trading halt on Wednesday, April 13
- Shares of the company last traded at seven cents on Friday, April 8
Sunstone Metals (STM) halted business operations ahead of issuing a fundraising announcement.
The ASX-listed mining exploration company did not say how much it plans to raise or how the money will be spent once received.
Towards the end of March, Sunstone released an investor presentation highlighting its strategy, pipeline of projects as well as what is in the pipeline for calendar year 2022.
The junior explorer is undertaking a two-rig drilling program on the Bramaderos project in southern Ecuador, which has returned high-grade gold and copper results.
Sunstone said it will borrow an additional drill rig from the El Palmar project in early April to accelerate the Bramaderos program where it is targeting a mineral resource estimate for later in the year.
Additionally, the company is progressing soil sampling, mapping and drilling at the El Palmar project in northern Ecuador.
Sunstone holds a 70% stake in El Palmar, which can be increased to 100% through a step acquisition agreement by financing exploration.
At this point, Sunstone Metals expects the trading halt to be lifted on April 13, when details of the capital increase are expected to be released.
Shares of the company last traded at seven cents on Friday, April 8.