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(Alliance News) - Sunrise Resources PLC on Monday said it has raised GP750,000 through a 267.9 million share placing as well as another GBP250,000 through a conditional broker option offer of 89.3 million shares.
The net funds raised will go mostly to developing the company's CS pozzolan-perlite project in the US state of Nevada, as well as initial drill testing at come of its gold and silver projects. The money also will be used for general working capital.
The placing and option offer shares all have a price of 0.28 pence each. On Monday, Sunrise shares were down 24% at 0.29p.
The broker option to subscribe for the GBP250,000 of shares was granted to Peterhouse so as to let existing shareholders participate in the placing at the same 0.28p price.
Peterhouse Capital Ltd, Sunrise's broker, arranged the placing and will be issued with 17.9 million warrants, entitling the holder to apply for a new share at the placing price at any time in the 12 months from the issue date.
Executive Chair Patrick Cheetham said: "This fundraising will allow the company to continue the development of its priority CS project in Nevada following the recent grant of the mine and reclamation permits. It will also allow the company to carry out some initial drill testing on its precious metal projects in Nevada as the board is keen to ensure that its gold and silver project portfolio delivers value for shareholders in the current strong market conditions for precious metals."
He added: "The company recognises that its share price on AIM has increased since the placing was initiated and that the placing price is now at a significant discount to the most recent closing bid price for the company's ordinary shares on AIM. Consequently, the company is pleased to have granted the broker option as a mechanism for existing shareholders in the company to apply for shares at the placing price."
By Anna Farley; annafarley@alliancenews.com
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