Sunrise Energy Metals Offers Shares at 30 Cents with Options to Raise $1.5M
Sunrise Energy Metals Limited has announced a $1.5 million Share Purchase Plan (SPP) offering eligible shareholders the chance to invest at 30 cents per share, accompanied by options exercisable at 40 cents until May 2027. The capital raise aims to fast-track the feasibility study and development of its Syerston Scandium Project in New South Wales.
- SPP offers up to $5,000 per eligible shareholder at 30 cents per share
- One option granted for every share subscribed, exercisable at 40 cents by May 2027
- Target raise of $1.5 million to fund Syerston Scandium Project feasibility and exploration
- Offer underwritten with scale-back mechanism for oversubscriptions
- Detailed risk disclosures including funding, market volatility, and regulatory challenges
Overview of the Share Purchase Plan
Sunrise Energy Metals Limited (ASX – SRL) has launched a Share Purchase Plan (SPP) aimed at raising up to $1.5 million to support the advancement of its Syerston Scandium Project, located in central New South Wales. Eligible shareholders can subscribe for shares at 30 cents each, with the added incentive of receiving one option for every share subscribed. These options are exercisable at 40 cents and expire on 31 May 2027.
The SPP is structured to allow investments up to $5,000 per shareholder without brokerage fees, and the offer is fully underwritten. In the event of oversubscription, the company reserves the right to scale back applications fairly and reasonably.
Purpose and Use of Funds
Funds raised through the SPP, alongside proceeds from a recent $6 million placement, will primarily accelerate the feasibility study for the Syerston Scandium Project. This study aims to update current operating and cost estimates to support the project's development. Additionally, the capital will fund ongoing exploration activities targeting copper and gold mineralisation in the Cloncurry district of Queensland, as well as cover general corporate overheads.
Investment Terms and Eligibility
Participation in the SPP is open exclusively to shareholders registered as of 7 – 00 pm Melbourne time on 17 April 2025, residing in Australia or New Zealand, and not classified as U.S. persons under securities laws. The offer is non-transferable and shareholders must apply via BPAY® or EFT by 5 – 00 pm on 24 June 2025.
Shares issued under the SPP will rank equally with existing shares, and options issued will follow the terms outlined in the prospectus, including an exercise price of 40 cents and expiry in May 2027.
Risks and Considerations
The company provides a comprehensive overview of risks associated with the investment, highlighting funding challenges, market volatility for scandium prices, operational risks including exploration and development uncertainties, environmental and regulatory compliance, and broader economic factors. Notably, the niche scandium market is influenced heavily by supply dynamics, particularly from China, and technological developments that could affect demand.
Sunrise Energy Metals also acknowledges the speculative nature of the investment, advising shareholders to seek professional financial advice before participating.
Financial Impact and Outlook
Pro-forma financial statements included in the prospectus illustrate the anticipated impact of the SPP and recent placement on the company's balance sheet, showing an increase in cash reserves to support project development. The company anticipates issuing approximately 20 million new shares and 5 million options under the SPP, increasing the total issued capital accordingly.
Directors and key executives maintain significant shareholdings, aligning management interests with shareholders. The company continues to meet its continuous disclosure obligations, providing transparency on project progress and financial status.
Bottom Line?
As Sunrise Energy Metals seeks to advance its scandium ambitions, the success of this capital raise and subsequent project milestones will be critical to watch.
Questions in the middle?
- Will the SPP reach its $1.5 million target or face significant scale-backs?
- How will scandium market price volatility impact the project's commercial viability?
- What are the timelines and key milestones for the updated feasibility study at Syerston?
