Cosmo Metals Accelerates Gold and Copper Drilling with $1.55M Funding

Cosmo Metals Secures $1.55M Capital Injection to Accelerate High-Impact Gold and Copper Drilling

Cosmo Metals (ASX:CMO) has successfully launched a $1.55 million fully underwritten entitlement offer, positioning the company to accelerate drilling programmes across its strategic gold and copper portfolio in Western Australia and New South Wales. The capital raising demonstrates strong institutional backing and provides the company with immediate funding to advance high-priority exploration targets through Cosmo Metals gold and copper drilling operations.

Furthermore, the funding structure eliminates execution risk whilst offering existing shareholders participation opportunities. This strategic approach positions the company to capitalise on significant discovery potential across multiple prospects.

Strong Institutional Support Underpins Capital Structure

The 5-for-14 non-renounceable entitlement offer at $0.010 per share has attracted significant support from both existing and new high net worth investors. Major shareholder Great Boulder Resources (ASX:GBR), which holds approximately 14% of Cosmo, has committed to taking up its full entitlement.

Additionally, Managing Director Ian Prentice has committed to sub-underwriting $40,000 in addition to taking up his personal entitlement. This demonstrates strong management confidence in the company's strategic direction.

Key Offer Terms

• Issue Price: $0.010 per share (20% discount to last close)
• Total Shares: ~155.1 million new shares
• Free Attaching Options: 1 option for every 4 shares subscribed
• Option Terms: Exercise price $0.015, expiry 3 April 2028
• Record Date: Monday, 16 February 2026
• Offer Period: 18 February – 9 March 2026

"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," stated Ian Prentice, Managing Director.

Strategic Fund Allocation Targets High-Value Exploration Assets

The capital will be strategically deployed across Cosmo's premium exploration portfolio, with particular focus on two standout projects that offer significant discovery potential. Moreover, this funding enables Cosmo Metals gold and copper drilling programmes to advance systematically across multiple high-priority targets.

The company has identified exceptional opportunities where geological conditions favour substantial discoveries. However, these require modern exploration techniques to unlock their full potential.

Kanowna Gold Project – Premium Location Advantage

The Kanowna Gold Project sits just 13km northeast of Kalgoorlie and directly adjacent to Northern Star's (ASX:NST) massive 7+ million ounce Kanowna Belle gold mine. This proximity places Cosmo in the heart of one of Australia's most prolific gold mining districts.

The geological conditions that created Northern Star's world-class deposit extend across tenement boundaries. Consequently, this creates exceptional potential for similar mineralisation on Cosmo's adjacent ground.

The funding will enable Cosmo Metals gold and copper drilling activities at Kanowna to target high-priority zones identified through geological surveys. In addition, the company's technical team has identified multiple targets that share similar structural characteristics to the adjacent Kanowna Belle deposit.

NSW Gold-Antimony-Copper Portfolio – Untapped 30-Year Opportunity

The Bingara and Nundle Projects represent a rare opportunity in the New England Orogen of northern NSW. These projects cover 743km² of highly prospective terrain that has seen virtually no modern exploration for over 30 years.

Historical mining activity confirms the presence of high-grade gold, antimony, and copper deposits. Nevertheless, the projects remain significantly underexplored using contemporary techniques.

Understanding Entitlement Offers: What Investors Need to Know

An entitlement offer gives existing shareholders the right to purchase new shares at a discounted price based on their current shareholding. In Cosmo's case, eligible shareholders can buy 5 new shares for every 14 shares they currently own at $0.010 per share.

This represents a 20% discount to the recent trading price. Furthermore, the structure provides immediate value potential if market conditions remain favourable.

How Non-Renounceable Rights Work

The non-renounceable structure means shareholders cannot sell their entitlement rights on the market. Instead, any unexercised rights will be placed with institutional investors at the same price through the underwriting arrangement.

Underwriting provides certainty that the company will receive the full $1.55 million regardless of retail shareholder participation. Discovery Capital Partners acts as the sole underwriter, guaranteeing to purchase any shares not taken up by existing shareholders.

Free Attaching Options Explained

Free attaching options provide additional upside potential for investors. For every four shares purchased under the offer, shareholders receive one option to buy another share at $0.015 before April 2028.

This structure allows investors to benefit from potential share price appreciation whilst limiting their immediate investment. Consequently, participants gain exposure to future upside at a predetermined price.

Why This Matters for Investors

• Existing shareholders can maintain their percentage ownership
• The discount provides immediate value if the share price recovers
• Free attaching options offer additional upside exposure
• Fully underwritten structure ensures the company receives full funding regardless of retail participation

Upcoming Catalysts and Timeline

Immediate Priorities (Q1 2026)

1. Entitlement Offer Completion – March 2026
2. Kanowna Drilling Commencement – High-impact targets identified
3. Bingara Drill Preparation – Modern exploration techniques applied
4. General Meeting – Sub-underwriter and lead manager option approvals (Late March)

The company has outlined plans for Cosmo Metals gold and copper drilling to commence immediately following the capital raising completion. Initial drilling at Kanowna will target structural zones similar to those hosting mineralisation at the adjacent Kanowna Belle mine.

Medium-Term Milestones (2026-2027)

• Kanowna Results: Initial drilling results from priority targets adjacent to major gold mine
• Bingara Campaign: First systematic drilling programme in 30+ years
• Resource Development: Potential resource estimates from successful drilling
• Strategic Partnerships: Proximity to Northern Star creates potential collaboration opportunities

Investment Thesis: Strategic Assets Meet Funding Certainty

Cosmo Metals presents a compelling investment proposition built on three fundamental strengths. These strengths support its comprehensive Cosmo Metals gold and copper drilling strategy across multiple high-potential targets.

Premium Asset Portfolio

• Kanowna: Direct adjacency to proven 7+ million ounce gold system
• NSW Projects: 743km² of unexplored historical mining districts
• Yamarna: Established base metal deposit with Mt Venn Cu-Ni-Co resource

Funding Security and Management Commitment

• Fully underwritten structure eliminates funding risk
• Strong institutional backing from new and existing investors
• Management skin in the game with director commitments and sub-underwriting
• Major shareholder support from Great Boulder Resources

Exploration Leverage and Timing

• 30+ years of modern exploration gap at NSW projects creates discovery potential
• Proven geological systems with historical high-grade mining
• Infrastructure advantage from Kanowna's proximity to established mining operations
• Technical team expertise advancing multiple exploration fronts simultaneously

The company's Managing Director Ian Prentice has emphasised the importance of maintaining exploration momentum across the portfolio. The funding structure provides certainty for drilling programmes whilst allowing existing shareholders to participate in the discount opportunity.

"Cosmo is pleased to have secured this funding to ensure we maintain our exploration momentum on the compelling gold discovery opportunity at Kanowna, on the doorstep of Kalgoorlie; and the high conviction gold, antimony and copper targets at the underexplored Bingara and Nundle Projects," stated Ian Prentice.

Technical Analysis: Geological Context and Exploration Potential

The New England Orogen represents one of Australia's most significant geological provinces, hosting numerous world-class deposits. The region's geological history created ideal conditions for gold, antimony, and copper mineralisation through multiple geological events spanning hundreds of millions of years.

At Bingara and Nundle, historical mining records indicate substantial production from high-grade deposits. However, modern exploration techniques including geophysical surveys, geochemical sampling, and systematic drilling have not been applied since the 1970s.

This exploration gap represents a significant opportunity for discovery. Furthermore, advances in exploration technology now enable more precise targeting of mineralised zones.

Kanowna's Geological Advantages

The Kanowna geological setting shares structural similarities with Northern Star's adjacent deposit. Gold mineralisation occurs within shear zones and quartz veins hosted by greenstone rocks.

These geological structures commonly extend beyond individual tenement boundaries. Consequently, this supports the potential for similar mineralisation on Cosmo's adjacent ground.

Why Investors Should Follow Cosmo Metals

Cosmo Metals has positioned itself at the intersection of proven geological systems and modern exploration techniques. This creates multiple pathways to discovery success across its strategic portfolio.

The company's strategic asset base spans two of Australia's most prospective geological regions. In addition, the fully underwritten capital raising provides immediate funding certainty for high-impact drilling programmes.

The combination of proven geology, funding certainty, and exploration upside positions Cosmo as a compelling opportunity in the junior resources sector. With drilling programmes set to commence and 30+ years of exploration catch-up potential at the NSW projects, the company offers investors exposure to genuine discovery potential backed by institutional support.

The fully underwritten structure eliminates execution risk whilst providing existing shareholders with the opportunity to participate at a discount. Moreover, the free attaching options add further upside potential, creating a structure that rewards both participation and patience.

Cosmo Metals has secured the funding and strategic positioning required to unlock significant value across its premium exploration portfolio. With drilling set to commence at projects adjacent to world-class deposits and in historically productive regions that haven't seen modern exploration for decades, investors should monitor developments closely as the company enters its most active exploration phase.

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