Sunstone Metals Limited is undertaking a cleansing offer in an effort to remove trading restrictions from a series of previously issued shares that were not accompanied by the required cleansing notices under the Corporations Act. The offering, detailed in a cleansing prospectus dated 20 May 2025 and lodged with ASIC, involves issuing up to 1,000 new shares at a price of A$0.013 per share. This minimal capital raise—totaling only A$13 before expenses—serves not as a means to raise funds but as a technical mechanism to facilitate the secondary trading of shares that have become restricted. The cleansing offer is being extended by invitation to selected investors, with a closing period running from 20 May 2025 to 23 May 2025. The prospectus outlines that the affected shares, primarily relating to share issues made between 2018 and 2025, include those arising from employee performance rights, placements, and other related transactions. Trading of Sunstone Metals Limited’s shares had been suspended on the ASX pending an application for remedial orders from the Federal Court, due to non-compliance with disclosure requirements. The aim of this offer is to rely on an exemption under section 708A(11) of the Corporations Act so that the sale of these restricted shares does not breach statutory regulations. The technical details further note that company share prices over the past three months ranged from a low of A$0.005 to a high of A$0.014, with the most recent sale at A$0.013, indicating very slight dilution given the extensive base of nearly 6 billion existing shares. The cleansing prospectus also emphasizes numerous risks inherent in investing in Sunstone Metals Limited, highlighting the speculative nature of its exploration activities. It reminds potential investors to carefully consider the specific risks including the company’s future funding challenges, regulatory compliance issues, operational uncertainties in mineral exploration, and broader economic risks that could impact share price performance. Sentiment in response to the cleansing offer is mixed. On the bullish side, the offer is viewed as a proactive step to resolve regulatory non-compliance issues that have clouded secondary share trading, which may help restore clearer market access and eventually improve shareholder liquidity. Additionally, the minimal impact on the company’s capital structure suggests that this measure is a technical fix rather than a repercussion of financial distress. Conversely, the bearish perspective highlights the underlying concerns: the necessity for such a cleansing offer reinforces that past regulatory oversights exist, and the company’s reliance on future capital raises is a reminder of the inherent risks in speculative exploration. This could signal ongoing operational uncertainties that require careful monitoring by beginner traders.