Lion Selection Group (ASX: LSX) has committed $3 million as part of a $22 million capital raising by Sunshine Metals (ASX: SHN).
Following completion of the placement and SPP, Lion is expected to hold approximately 10.1% of Sunshine.
The capital raising comprises a $19 million placement and a $3 million Share Purchase Plan priced at 2.7 cents per share.
The investment follows Sunshine’s acquisition of the Mt Moss project in North Queensland, which includes tenure contiguous to Sunshine’s Sybil project and a permitted process plant site and associated equipment.
Sunshine proposes to rejuvenate the Mt Moss infrastructure to process gold ore mined from its Liontown project, which hosts an established polymetallic resource.
According to Lion, the Mt Moss transaction and associated funding place Sunshine on a defined pathway toward gold production, joining Brightstar Resources and Medallion Metals as one of three portfolio companies currently working toward production with construction activities underway.
Lion Managing Director Hedley Widdup said the Mt Moss acquisition and follow‑on investment adjust Sunshine’s positioning within Lion’s portfolio, consistent with its focus on backing advanced development‑stage projects.