Sunstone Metals (ASX:STM) received firm commitments to raise AU$4 million via an oversubscribed share placement of 800 million new shares at AU$0.005 apiece, according to a Thursday filing with the Australian bourse.
The offer price is a discount of nearly 17% to the last closing price of the company's shares. Settlement is expected on April 1. Allotment of shares is on April 2.
Proceeds will be used as working capital amid ongoing talks about partnership opportunities involving the company's gold and copper discoveries. Sunstone Metals said an "attractive opportunity" is in the advanced stage where "a confidential and incomplete non-binding indicative offer could be finalized," per the filing.
Morgans Corporate and Canaccord Genuity were the joint lead managers for the placement.
Sunstone Metals' shares surged 25% in recent trade.
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