Megado Raises A$1.53M, Secures 80% Stake in 956km² Iberian Copper Project

Strategic Acquisition in Europe

Megado Minerals Limited (ASX: MEG) has taken a decisive step in expanding its footprint in the critical minerals sector with an agreement to acquire an 80% interest in Iberian Copper Pty Ltd, which holds a major copper project in Northern Spain. The Iberian Copper Project encompasses 12 permits under application, covering a substantial 956 square kilometres across historically copper-rich strata along a 200-kilometre east-west strike.

This region, spanning the provinces of Navarra and Aragón, is notable for its legacy of copper oxide mining that persisted until the 1970s. The project area includes at least 12 historic mines and over 50 copper occurrences documented during exploration in the 1970s by the Spanish Government and Asturiana de Zinc (now Glencore). Early rock fragment assays from the former St Emilia mine have returned impressive grades, including a standout 9.66% copper and 141 grams per tonne silver, underscoring the project's potential.

Alignment with EU Critical Minerals Policy

The timing of this acquisition aligns well with the European Union's 2024 Critical Raw Materials Act, which designates copper as a strategic critical mineral. The legislation aims to bolster the EU's internal supply chain by targeting at least 10% of annual copper consumption from domestic extraction and 40% from processing. Projects like Iberian Copper stand to benefit from streamlined permitting and financial support, enhancing their attractiveness and potential for development.

Rare Earths Exploration in the United States

In parallel, Megado has executed an exploration agreement with PURE Exploration (USA) LLC, a wholly owned subsidiary of Iluka Resources, for the North Fork Rare Earth Project in Idaho. This three-tranche deal grants Iluka an exclusive two-year right to explore, with staged payments and options to purchase the project outright. Notably, Iluka will cover all exploration and claim maintenance costs during the initial period and may convert future payments into a gross revenue royalty, providing Megado with potential upside linked to commercial success.

Capital Raising and Corporate Developments

To support these initiatives, Megado completed a non-renounceable rights issue and a non-brokered share placement in late 2024, raising approximately A$1.53 million before costs. The rights issue was under-subscribed, with the shortfall fully placed, while the placement included a tranche of shares to be issued to directors, subject to shareholder approval at the upcoming AGM. The company ended the quarter with a healthy cash balance of A$2.13 million, positioning it well to advance exploration and development activities.

Shareholder approval remains a key milestone, with the vote on the Iberian Copper acquisition and director share placement scheduled for the March 2025 AGM. The acquisition consideration includes 175 million Megado shares and performance rights tied to mineral resource milestones, incentivising the vendors to progress the project towards JORC-compliant resource definitions.

Looking Ahead

Megado’s portfolio also retains 100% interests in lithium and gold projects in Quebec, Canada, maintaining exposure to multiple critical minerals. The company is preparing for further geological mapping campaigns in these regions, aiming to unlock additional value.

Overall, Megado Minerals is positioning itself as a diversified critical minerals explorer with strategic assets in copper and rare earths, aligned with global supply chain imperatives. The coming months will be pivotal as the company seeks shareholder endorsement and advances its exploration programs.