Sunstone Metals Plans 30-for-1 Share Consolidation After Placement

Background and Rationale

Sunstone Metals Limited (ASX – STM) has announced plans to undertake a significant share consolidation on a 30-for-1 basis, pending shareholder approval at a general meeting scheduled for 23 February 2026. This move comes after a recent capital raising that expanded the company's securities on issue to nearly 7 billion shares, alongside hundreds of millions of unlisted options and performance rights.

The company cites the consolidation as a strategic step to streamline its capital structure, which has become cumbersome due to the sheer volume of securities. By reducing the number of shares on issue, Sunstone aims to create a more manageable and efficient framework that better reflects its current size and stage of development.

Impact on Shareholders and Securities

The consolidation will apply uniformly across all shareholders, including holders of unlisted options and performance rights, which will be adjusted proportionally. Importantly, the exercise prices of options will be amended in accordance with ASX Listing Rules to maintain their economic value post-consolidation. The company assures that the consolidation will not materially affect the percentage ownership of any individual shareholder, with fractional entitlements rounded up to the nearest whole share.

This approach is designed to maintain fairness and transparency, ensuring that all investors retain their relative stakes while benefiting from a cleaner capital structure.

Strategic Implications and Market Appeal

Sunstone’s management highlights that the consolidation will facilitate ongoing corporate discussions and capital management initiatives by presenting a less complex share register. Moreover, a more streamlined capital structure is expected to enhance the company’s appeal to a broader range of investors, potentially improving liquidity and market perception.

Given the competitive nature of the mining sector and the importance of investor confidence, this move could position Sunstone more favourably as it advances its exploration and development objectives.

Next Steps and Timetable

The company has laid out a clear timetable for the consolidation process. Following the shareholder meeting on 23 February, the consolidation is expected to take effect immediately, with trading on a post-consolidation basis commencing on 25 February 2026. Shareholders will receive updated holding statements reflecting the new share counts by early March.

Investors will be watching closely for the outcome of the shareholder vote, which will determine whether this capital restructuring proceeds as planned.