LONDON (ShareCast) - (Sharecast News) - Sunrise Resources has raised £1m before expenses to develop its core mining project in Nevada and for other purposes.

The AIM-traded company said it raised £750,000 by placing shares with investors at 0.28p a share - 24% less than the closing share price on 21 August. It raised a further £250,000, also priced at 28p, through a "broker option offer" to allow existing shareholders to take part in the fundraising. Both sums exclude transaction costs.

Sunrise said existing shareholders and other interested parties should contact Peterhouse Capital by 17:00 BST on 26 August through a broker or adviser. In total the placing and broker option shares represent 9.71% of Sunrise's enlarged share capital.

The company's shares fell 21% to 0.30p at 10:05 BST.

Patrick Cheetham, Sunrise's executive chairman, said : "This fundraising will allow the company to continue the development of its priority CS Project in Nevada following the recent grant of the mine and reclamation permits.

"It will also allow the company to carry out some initial drill testing on its precious metal projects in Nevada as the board is keen to ensure that its gold and silver project portfolio delivers value for shareholders in the current strong market conditions for precious metals."

Sunrise received approval from the Nevada mining regulator in early August to develop its CS Pozzolan-Perlite mine in the western US state.

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