Sunrise Energy Metals (ASX: SRL), an Australian scandium developer, is raising A$46 million ($30 million) through a share placement to fund pre-construction activities at its Syerston project in New South Wales. The company plans to issue over 27 million new shares at A$4.25 each, representing a 2.2% premium over the last closing price. The placement, expected to be conducted in two tranches, follows an 11.8% increase in share price to A$4.65, giving the company a market capitalization of A$574.4 million ($373.8 million).
The Syerston project, located 450 km west of Sydney, is noted as the world’s largest and highest-grade primary scandium deposit, with nearly 46 million tonnes of resources grading 414 parts per million scandium. Recent estimates show a significant ore reserve boost, representing an 87% increase in contained scandium, now totaling over 1,300 tonnes. The project is projected to produce roughly 60 tonnes of scandium annually over a mine life of 32 years.
Scandium is considered a critical mineral necessary for semiconductor technology. The U.S. currently accounts for about 90% of its demand but relies heavily on supplies from China. Notably, the U.S. Export-Import Bank has expressed interest in providing a loan of $67 million for the Syerston project, while Lockheed Martin has indicated plans to purchase a quarter of the project’s annual scandium output.
