Sunrise Energy Metals has successfully raised $18.865 million through a follow-on placement. The company issued 3.85 million shares at a price of $4.90 each, representing a 15.3 per cent premium compared to its previous placement conducted in November. Sunrise Energy Metals is focused on developing its Syerston project, a globally significant scandium, nickel, and cobalt resource. The company aims to supply critical materials for the growing electric vehicle and renewable energy sectors.
The newly acquired funds, in conjunction with the $46 million raised over the past month, will be used to expedite pre-construction activities at the Syerston Scandium Project in New South Wales. These activities include detailed engineering work, establishing crucial water and power connections, conducting in-fill drilling programs, and initiating early equipment contracting processes. The company is focused on de-risking critical construction milestones ahead of a final investment decision.
Managing director Sam Riggall stated that the combined funding, along with anticipated proceeds from options and conditional support from the US EXIM Bank for up to US$67 million (approximately $102 million AUD), provides the company with a clear financial pathway to fully fund the Syerston project. This positions Sunrise Energy Metals to advance the project towards development and eventual production.
The placement price reflects investor confidence, sitting just 0.2 per cent above the closing share price on November 26 and 15.3 per cent higher than the prior placement price. The capital injection is designed to facilitate the de-risking of essential construction path activities, paving the way for a positive final investment decision on the Syerston Scandium Project.
