Sun Peak Metals closed $6.7 million private placement financing
Sun Peak Metals Corp. [PEAK-TSXV, SUNPF-OTCQB] said it has raised $6.7 million from an oversubscribed private placement. The offering was completed in connection with the company’s proposed acquisition of Saudi Discovery SPV Ltd. (SDV), with net proceeds earmarked for the advancement of Sun Peak’s Shire Volcanogenic Massive Sulfide (VMS) project Ethiopia.
The offering consisted of 16 million subscription receipts of a wholly-owned subsidiary of the company (FinCo) priced at 35 cents per FinCo Subscription Receipt, raising gross proceeds of $5.6 million, and 3.02 million subscription receipts of Sun Peak priced at 35 cents each, generating gross proceeds of $1.6 million.
Sun Peak shares advanced on the news, rising 2.8% or $0.01 to 36 cents. The shares trade in a 52-week range of 41.5 cents and 15 cents.
Sun Peak and SDV announced on September 18, 2025, that they had entered into a non-binding later of intent to combine their respective businesses. Sun Peak said the transaction would create a leading exploration and development company focused on the highly prospective Arabian-Nubian-Shield.
SDC is a privately held mineral exploration company with a portfolio of six existing exploration licenses covering 340 square kilometres over four projects and other pending licenses covering an additional 700 square kilometres in the Kingdom of Saudi Arabia. The licenses are located within VMS trends of the Arabian Nubian Shield and future exploration will focus on both gold-copper VMS and orogenic gold targets. Sun Peak is focused on gold and copper in the Tigray Region of northern Ethiopia. Its key asset is its 1,450 square kilometre Shire Project, which consists of six exploration licenses. The company said the geology is similar to that of the Bisha Mine and Asmara projects in Eritrea.
In a press release on October 30, 2025, said it had entered into a definitive share exchange agreement with SDC. Under the agreement, Sun Peak said it will issue 58 million common shares to SDC shareholders in exchange for all of the issued and outstanding shares of SDC. Sun Peak shareholders are expected to vote on the transaction at a meeting on December 1, 2025 in Vancouver.
Insiders of the company subscribed for 500,000 FinCo subscription receipts and 1.73 million Sun Peak subscription receipts, generating gross proceeds of $780,500. Each Finco subscription receipt will be automatically exchanged upon the satisfaction of escrow release conditions for one unit of FinCo. Each Finco unit will consist of one common share of FinCo and one-half warrant of FinCo Each Sun Peak subscription receipt will be automatically exchanged under similar conditions for one unit of FinCo. Each Sun Peak unit will consist of one Sun Peak share and one half of a Sun Peak warrant.