Cosmo Metals (ASX:CMO) funds drilling push across WA and NSW with $1.55m entitlement offer

Cosmo Metals has moved to secure near term exploration momentum through a fully underwritten $1.55m non renounceable entitlement offer, positioning the company to advance drilling across its gold, antimony and copper portfolio in Western Australia and New South Wales.

The raising is structured to bring in both existing and new high net worth investors while directing capital toward defined drill programs and exploration expenditure rather than early stage concept work.

Highlights

• Fully underwritten non renounceable entitlement offer to raise ~$1.55m at $0.010 per new share
• Offer priced at a 20% discount to last close of $0.0125 and 22.4% discount to 5 day VWAP of $0.0129
• Funds allocated to drilling at the Kanowna Gold Project near Kalgoorlie and the Bingara and Nundle gold antimony and copper projects in NSW
• Major shareholder Great Boulder Resources (ASX:GBR) committed to take up ~14% entitlement
• Managing Director to sub underwrite $40,000 and participate in his entitlement
• Attaching options issued on a 1 for 4 basis, exercisable at $0.015 on or before 3 April 2028

The capital raising is structured as a five for fourteen offer, with ~155.1m new shares to be issued at $0.010 per share, alongside one free attaching option for every four shares subscribed.

The company states the new shares will rank pari passu with existing issued shares and will be quoted on ASX following issue.

Discovery Capital Partners is acting as sole underwriter, with Cumulus Wealth and Discovery Capital Partners as joint lead managers, and additional options proposed as fees subject to shareholder approval.

From an asset perspective, the allocation of proceeds is clearly defined. Cosmo will direct funds to drilling at the Kanowna Gold Project, located about 13 km north east of Kalgoorlie and adjacent to Northern Star’s +7Moz Au Kanowna Belle gold mine.

Additional drilling and exploration spending is planned across the Bingara and Nundle projects in the New England Orogen of northern NSW, which together cover ~743km2 and are described as underexplored, with no drilling in ~30 years prior to Cosmo’s ownership.

The raising also supports exploration at the Yamarna Base Metals Project and general working capital and corporate overheads.

Management frames the raising as both defensive and enabling, linking balance sheet capacity with program continuity. As Managing Director Ian Prentice stated,

“The fully underwritten entitlement issue structure ensures that our shareholders are provided the opportunity to participate in the funding, whilst also presenting an opportunity for the introduction of new high quality high net worth investors to the Company.”

He also confirmed the intent to apply funds to a high impact drilling campaign at Kanowna and continued drill preparation at Bingara.

The timetable sets a record date of 16 February 2026, opening on 18 February 2026 and an indicative close on 9 March 2026, with a shareholder meeting in late March 2026 to approve the issue of sub underwriter and lead manager options.

In sector context, the raising reflects a familiar junior exploration pattern where discounted, option attached entitlement offers are used to fund targeted drill phases at projects near established mineral districts and historically productive belts.

The immediate outlook centres on execution of the flagged drilling and exploration programs across Kanowna, Bingara and Nundle, with results from these campaigns likely to define the next stage of Cosmo’s project sequencing and capital requirements.

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