Sunshine Metals Secures $5M to Accelerate Sybil Drilling and Liontown Gold Study

Funding Boost for Key Exploration Targets

Sunshine Metals Limited (ASX, SHN) has successfully secured $5 million in a placement priced at 1.2 cents per share, aimed at accelerating exploration activities at its Sybil epithermal gold targets and completing the Liontown gold study. The placement attracted both new and existing institutional and sophisticated investors, with the company’s largest shareholder, Lion Selection Group Ltd, increasing its holding to 9.2% through a $1 million investment.

The funds will underpin a busy period of drilling and geophysical programs scheduled for September and October 2025, with diamond drill rigs already mobilised to both Sybil and Liontown North. These efforts are designed to rapidly advance the understanding and development of these promising gold prospects within the Ravenswood Consolidated Project, a region with a rich history of gold and base metal production.

Strategic Focus on Sybil and Liontown

Sybil, located approximately 135 kilometres west of Townsville, is a relatively under-explored low sulphidation epithermal gold system analogous to the nearby Pajingo mine, which has produced around 4 million ounces of gold. Sunshine’s recent drilling at Sybil’s Francis Creek prospect has yielded encouraging high-grade gold intersections, including 7 metres at 10.6 grams per tonne and 3 metres at 23.2 grams per tonne, highlighting the potential for significant resource expansion.

Meanwhile, the Liontown gold study is progressing with metallurgical test work, resource updates, and preliminary design work slated for completion in September 2025. The Liontown area hosts a substantial zinc-copper-lead-gold-silver volcanogenic massive sulphide (VMS) resource, with Sunshine targeting both gold-rich footwall zones and advanced VMS targets analogous to the nearby Highway-Reward mine.

Capital Structure and Shareholder Participation

The placement will see the issue of over 400 million new shares under the company’s existing placement capacity, with director participation of approximately $139,000 subject to shareholder approval at the upcoming annual general meeting. This will bring total director holdings to around $3.7 million, signalling strong insider confidence in the company’s prospects.

Canaccord Genuity (Australia) Limited acted as sole lead manager for the placement and will receive broker options exercisable at 1.8 cents, expiring three years from issue. This arrangement aligns the broker’s interests with the company’s ongoing exploration success.

Looking Ahead, Exploration and News Flow

Sunshine Metals is gearing up for a period rich in news flow, with drilling results from Sybil and Liontown North expected between September and October 2025. Additionally, metallurgical results and resource upgrades at Liontown are anticipated in September, alongside geophysical survey outcomes at the Coronation area. The company will also present at the Resources Rising Stars Conference in mid-September, providing further visibility to investors and industry stakeholders.

Overall, the $5 million placement provides Sunshine Metals with the financial firepower to advance its key projects in a historically prolific gold and base metals district, potentially unlocking significant value for shareholders as exploration progresses.