Friedland-backed Sunrise readies for scandium build

Sunrise Energy Metals (ASX: SRL), backed by mining financier Robert Friedland, has raised A$32.5 million (C$29.7 million) to start pre-construction at its Syerston scandium development in New South Wales.

The Australian company said Tuesday it received commitments for 5 million new shares at A$6.50 each, a small discount to last week’s A$6.65 close in Sydney. It follows two placements last month that raised A$46 million at A$4.25 and A$18.9 million at A$4.90, lifting total recent funding to about $105 million, with $59 million pending shareholder approval next month. Sunrise also has access to a potential US$67-million loan from the Export-Import Bank of the United States.

“The additional funds raised over the past two months, combined with potential proceeds from the exercise of options and export credit agency funding support, allow us to commit to pre-construction activities and target on-site construction by mid-2026,” Managing Director and CEO Sam Riggall said in a news release.

Scandium is a small but strategic input for advanced alloys and solid-oxide fuel cells used in aerospace, autos and communications. Western buyers led by the U.S. dominate demand while China controls much of supply, pushing allied sourcing efforts in Australia and Canada. Defence contractor Lockheed Martin (NYSE: LMT) has signalled interest in Syerston offtake under the countries’ critical minerals pact, underlining geopolitical support for the project.

Shares closed Tuesday in Sydney at A$7.38, valuing the miner at about A$978 million.

High-grade scandium

fLocated about 450 km west of Sydney, the Syerston project represents one of the world’s largest and highest-grade deposits of scandium. A recent resource update showed it has nearly 46 million measured and indicated tonnes grading 414 parts per million scandium.

According to Sunrise’s estimates, the Syerston project can produce about 60 tonnes of scandium a year over a 32-year mine life.

However, part of the equity haul still requires shareholder approval and the scandium market remains thin and opaque, leaving pricing and offtake ramp-up as execution risks even with export-credit backing.