Recent results from drilling at Bramaderos in Southern Ecuador returned a 450m wide intersection of gold-copper mineralisation from surface
Sunstone Metals to sell Copperstone Resources. (Credit: Khusen Rustamov from Pixabay.)
Sunstone Metals Ltd (ASX: STM) is pleased to announce that it has agreed to an off-market sale of 70 million Copperstone Resources AB (‘Copperstone’) shares at 0.80 SEK per share (~A$0.123 per share) for A$8.6 million cash. In addition, Sunstone has recently sold 12,626,268 shares on-market at an average price of 0.866 SEK per share for a further A$1.7 million. The combined sales of 82.56 million shares at an average price of 0.81 SEK has generated A$10.3M in cash.
The transaction price is an ~5% discount to Copperstone’s most recent closing price prior to the transaction.
Sunstone continues to hold ~71.4 million Copperstone shares (~6.4% of the shares on issue), valued today at A$9.2 million, and providing further exposure to an advanced copper project in a strong copper price environment.
Sunstone Managing Director Malcolm Norris said: “The proceeds of this sale will be directed to our highly promising exploration opportunities in Ecuador where drilling is in progress at Bramaderos and is expected to start soon at El Palmar.
“We have some very strong drill targets, and we are well-funded to drill them.”
A recent ground magnetic survey at El Palmar in Northern Ecuador identified an outstanding drill target with a classic porphyry signature and a drill rig has been contracted and is expected to commence drilling this quarter (See ASX announcement dated 6th May 2021). Recent results from drilling at Bramaderos in Southern Ecuador returned a 450m wide intersection of gold-copper mineralisation from surface at the Brama target where drill follow-up is underway.
Source: Company Press Release