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Highlights

  • Sunstone raises $4M via oversubscribed placement at 0.5c per share.
  • Proceeds will fund working capital and ongoing corporate discussions.
  • Company continues due diligence on potential gold and copper asset acquisitions.

Sunstone Metals Limited (ASX:STM) has successfully secured $4,000,000 through an oversubscribed share placement at 0.5 cents ($0.005) per share. The placement was made to existing institutional and sophisticated shareholders, along with new investors. After accounting for costs of $240,000, the funds will be used primarily for working capital as Sunstone continues its ongoing corporate discussions aimed at unlocking value from its gold and copper assets.

As previously announced, Sunstone has been actively pursuing partnership opportunities to advance its significant gold and copper discoveries. The company has hosted site visits and allowed various parties to access its data room, with the goal of reaching a deal. A key opportunity is currently advancing, and a non-binding indicative offer could be finalized soon, leading to a confirmatory due diligence phase. Sunstone is progressing its investigations into the proposal and associated risks as it moves closer to a potential agreement.

In addition to these discussions, Sunstone is progressing other commercial negotiations for a material business transaction. This could involve combining one of its large gold-copper assets with a privately owned gold development asset, potentially enhancing the company's portfolio. The company has already hosted a site visit for the asset and continues engaging with major shareholders to assess the strategic merits of the proposed combination.

Although Sunstone is optimistic about these potential opportunities, there is no guarantee that any proposals will be accepted or lead to a binding transaction. The company will continue to provide updates as appropriate, in line with its continuous disclosure obligations.

The placement involved the issuance of 800,000,000 new shares, with the shares to rank equally with existing shares in the company.