Sunrise Energy Metals (Sunrise) has announced the successful raising of $46 million for pre-construction activities at its Syerston scandium project in New South Wales – one of the world’s largest rare earth deposits.
An updated mineral resource estimate for Syerston confirms it as the world’s largest and highest-grade resource, boasting a global resource of 19,007 tonnes at an average grade of 414 grams per tonne (g/t). This represented a 98 per cent increase in contained scandium.
The funds, raised through the sale of 10.7 million shares at $4.25, will be used for pre-construction activities such as engineering works, connecting water and power to the site, infill drilling for the site’s mine plan and early works contracting equipment.
The aim is to de-risk those activities on the critical path for construction to ultimately support a final investment decision.
Sunrise managing director Sam Riggall said he was pleased by the strong support received from both existing and new shareholders in the placement.
“This raising and the potential proceeds from the future exercise of options, combined with the letter of conditional funding support from US Export-Import Bank for up to $US67 million, gives us excellent line of sight to a comprehensive financing package for the Syerston project.
“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.”
The announcement of raised capital comes off the back of several key critical minerals developments, including the landmark agreement with Australia and the US in which Sunrise was named as one of the seven Australian companies mentioned as having projects of great importance.
The two countries pledged to contribute at least $1 billion each in financing over the next six months to advance ‘ready to go’ projects that will help to curb the countries’ reliance on China for rare earths.
Scandium is described as an integral part of both civilian and defence sector technologies – used in 6G wireless communication and 3D-printed high-performance alloy for aerospace components.
The project has the backing of American billionaire and mining financier Robert Friedland, who is also co-chair of the company.