Burley Minerals Launches $1M Capital Raise for Cane Bore Iron Ore Drilling

Burley Minerals Launches $1.0M Capital Raise to Drill Its Pilbara Iron Ore Project

Burley Minerals Ltd (ASX: BUR) has announced a $1.0 million capital raise combining a share placement and share purchase plan, with proceeds earmarked to fund a maiden drilling programme at its Cane Bore Iron Ore Project in Western Australia's Pilbara region. The Burley Minerals capital raise for Cane Bore iron ore drilling lifts a trading halt on BUR securities and signals the company is moving from exploration planning into active drill-ready execution.

The Raise at a Glance

The Burley Minerals capital raise for Cane Bore iron ore drilling is structured in two tranches, offering both institutional access and a pathway for existing retail shareholders to participate at the same price.

The placement shares are expected to be allotted on or around 20 May 2026, whilst the SPP is set to open on 21 May 2026 and close on 5 June 2026, with SPP shares expected to be quoted on ASX by 13 June 2026.

"Burley is pleased to announce a $1.0m capital raise. This funding will allow Burley to progress drilling at its Cane Bore Iron Project near Onslow in the West Pilbara. A heritage survey is booked for next month and the drilling permits are granted. Cane Bore is close to existing infrastructure and easy to access, so once the all-clear is given, a drill rig will be mobilised as soon as possible." — Stewart McCallion, Managing Director & CEO, Burley Minerals

Where the Funds Are Headed

The company has outlined a clear and multi-pronged application of proceeds from the Burley Minerals capital raise for Cane Bore iron ore drilling:

1. Maiden drilling programme at Cane Bore Iron Project — targeting the North and Step-out Targets within the project area (primary use of funds)
2. Exploration at the Chubb Lithium Project in Québec, Canada
3. Potential acquisitions — maintaining optionality for value-accretive opportunities
4. Costs of issue and general working capital

The primary focus is unambiguous: getting a drill rig onto the Cane Bore tenement as quickly as possible once heritage survey clearance is received.

Understanding Channel Iron Deposits — What Investors Need to Know

What Is a Channel Iron Deposit (CID)?

A Channel Iron Deposit is a type of iron ore deposit formed by the ancient erosion and redeposition of iron-rich material along river channels. Over millions of years, iron-rich sediments accumulated in valley floors and drainage systems, creating elevated, laterite-capped plateaus rich in goethite and other iron oxide minerals.

Why Does This Matter to Investors?

Channel Iron Deposits offer several distinct advantages over other iron ore formations:

• CIDs are typically high-grade, near-surface deposits, meaning they can be relatively shallow and lower-cost to mine compared to deeper banded iron formations (BIFs)
• Their tabular, flat-lying geometry often allows for straightforward open-cut mining with low strip ratios
• CIDs are well established in the Pilbara — some of Australia's largest iron ore producers have historically incorporated CID material into their product blends
• Proximity to infrastructure is a critical value driver for CID projects, given the bulk commodity nature of iron ore

Furthermore, Cane Bore sits within the Hamersley Iron Ore Province — widely regarded as one of the world's premier iron ore addresses — and the company describes it as the closest CID resource to a port in the region.

Glossary of Key Terms

The Cane Bore Project — Location Is a Strategic Advantage

The Cane Bore Iron Project covers more than 370 hectares of high-lying CID terrain across an 18 km strike length near Onslow in the West Pilbara.

What makes the project geographically compelling:

• Port proximity: The Port of Ashburton, near Onslow, is within less than 120 km hauling distance
• Road access: The sealed Onslow Road is approximately 30 km from the Cane Bore CID target areas — a meaningful advantage for mobilising equipment and reducing logistics costs
• Regional context: Located in the Hamersley Iron Ore Province, one of the world's most established and productive iron ore jurisdictions

For bulk commodity projects, logistics costs are a central determinant of economic viability. Being the closest CID deposit to a deepwater port in its area is a differentiating factor that reduces potential development risk relative to more remote peers.

Chubb Lithium Project — A Second String to the Bow

Whilst iron ore is the near-term operational focus through the Burley Minerals capital raise for Cane Bore iron ore drilling, Burley also holds 100% ownership of the Chubb Lithium Project in Québec, Canada, acquired in February 2023.

Key attributes of Chubb include:

• Located north of Val d'Or, a well-established Canadian mining community in southern Québec
• Total area of 1,509 hectares
• Situated less than 15 km from Canada's only operating lithium mine — the North America Lithium (NAL) Operation, owned by Elevra Lithium (ASX: ELV)
• The NAL operation has reported Mineral Resources of 95 Mt at 1.15% Li₂O
• Chubb has only been drill-tested on 6 of its 35 Mineral Claims, indicating the project remains at an early but highly prospective stage
• A significant fertile LCT pegmatite system has already been identified

The proximity to established lithium mining infrastructure in Québec and the largely untested nature of the tenement package mean Chubb represents an optionality asset with considerable exploration upside.

Upcoming Milestones — The Path Forward

With drilling permits already granted and a heritage survey booked for June 2026, the operational timeline at Cane Bore is well advanced. Below is the near-term event sequence investors should track:

The company has indicated the rig will be mobilised "as soon as possible" following heritage clearance, which suggests drilling results could become a near-term market catalyst.

Investment Thesis — Why Cane Bore Deserves Attention

Several factors combine to make this a meaningful moment in Burley's exploration story.

1. Drill-Ready With Permits in Place

The regulatory groundwork is done. Drilling permits are granted, and the heritage survey — the final pre-drilling step — is already scheduled. The capital raise completes the funding picture, meaning execution risk between now and first drill results is relatively contained.

2. Infrastructure-Proximate CID in a Tier-One Jurisdiction

The Pilbara is the global benchmark for iron ore production. Cane Bore's position as the closest CID to the Ashburton Port is a logistics advantage that becomes increasingly relevant as the project matures toward development.

3. Large, Largely Undrilled Footprint

More than 370 hectares of high-lying CID across 18 km of strike represents a substantial target envelope for a maiden drill programme. Results from the North and Step-out Targets will begin to define the geometry and grade profile of what could be a significant deposit.

4. Dual-Commodity Exposure

The Chubb Lithium Project in Québec adds exploration optionality in a battery metals jurisdiction with established nearby infrastructure and production history. With only 6 of 35 mineral claims drill-tested, the project offers material blue-sky potential.

5. Shareholder-Inclusive Capital Structure

The inclusion of an SPP at the same price as the institutional placement ($0.023 per share) allows existing shareholders to participate without brokerage costs and avoid dilution, which reflects a shareholder-friendly approach to the raise.

Why Investors Should Keep BUR on Their Radar

Burley Minerals sits at a pivotal transition point — from explorer to active driller — in one of the world's most recognised mining provinces. The funding is secured, the permits are in hand, and the heritage survey is the last procedural step before drill bits turn.

For investors seeking early-stage exposure to Pilbara iron ore, maiden drilling catalysts, or dual-commodity optionality via an underexplored lithium asset in Québec, Burley Minerals offers a straightforward near-term news flow story with defined catalysts and a modest market capitalisation that leaves room for exploration upside.

Burley Minerals has positioned itself for a meaningful operational step-change, with a fully funded, permit-granted maiden drilling campaign at the Cane Bore CID project in the Hamersley Iron Ore Province. With heritage clearance imminent and a drill rig ready to mobilise, investors should watch closely for results from the North and Step-out Targets — representing the first systematic test of a project with over 18 km of prospective strike length in one of the world's premier iron ore addresses.

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