Sunrise Energy Metals has secured $46 million to begin pre-construction activities at its Syerston Scandium Project in New South Wales, approximately 450km west of Sydney.
The placement will fund critical early works as the company moves to develop what it said is the world’s largest and highest-grade primary scandium deposit. The capital raise was priced at $4.25 per share, representing a 2.2 per cent premium to the company’s last closing price.
Investors also received a one-for-one unlisted option exercisable at the same price over a two-year term. Co-chair Robert Friedland and managing director Sam Riggall have both committed to participating in the placement, subject to shareholder approval.
“This raising and the potential proceeds from the future exercise of options, combined with the letter of conditional funding support from US EXIM Bank for up to $US67 million, gives us excellent line of sight to a comprehensive financing package for the Syerston Project,” Riggall said.
“Most importantly, it allows us to start work on delivering a new primary source of scandium at a time of significant supply risk given disruption to international trade flows in the metal.”
Proceeds will be directed towards engineering, site infrastructure, including water and power connections, and infill drilling. The company stated the funds would also allow it to secure equipment with long lead times, effectively de-risking the construction schedule ahead of a final investment decision.
The push to develop Syerston comes amid heightened global focus on critical minerals supply chains. The company holds a letter of conditional funding support from the US EXIM Bank for up to $US67 million, underscoring Western interest in securing non-Chinese sources of scandium.
Sunrise continues to advance discussions with potential end-users for the product, which is used to strengthen aluminium alloys for the aerospace and automotive industries. The successful placement enables the company to transition from study phases to on-the-ground physical works in central New South Wales.
