Exploration Risks Loom as Connected Minerals Prepares Maiden Drilling in Namibia

• Raised approximately $5.1 million via placement and entitlement offer
• Completed transformation into a junior exploration company
• High-grade uranium mineralisation confirmed at Etango North-East Project
• Maiden drilling program planned for Q1 2025 in Namibia
• Acquired 100% ownership of three exploration licences in Western Australia

Capital Raise and Strategic Transformation

Connected Minerals Ltd (ASX: CML) marked a significant milestone in the December 2024 quarter by successfully raising approximately $5.1 million through a combination of a placement and a pro rata non-renounceable entitlement offer. This capital injection underpins the company's strategic pivot into a junior exploration entity, focused on uranium and multi-commodity prospects across Namibia and Western Australia.

The company’s relisting on the ASX in late October 2024 completed its transformation, securing a portfolio of promising exploration assets and positioning Connected Minerals to aggressively pursue discovery opportunities.

Promising Uranium Exploration in Namibia

At the heart of Connected Minerals’ exploration efforts is the Etango North-East Project in Namibia, situated in one of the world’s most prolific uranium-producing provinces. The company acquired an 80% interest in this granted exclusive prospecting licence (EPL 6933) and two additional EPL applications, strategically located near established uranium mines such as Rossing and Husab.

Led by veteran geologist Herbert Roesener, Connected Minerals launched an aggressive maiden field program in October 2024. Initial rock chip sampling returned standout uranium oxide (U3O8) grades, with samples reaching as high as 2,086 ppm. These results prompted an expansion of the exploration program, including trenching, detailed geological mapping, scintillometer surveys, and drone photogrammetry to refine drill targets.

The extended program concluded in December 2024, with over 150 rock chip samples collected and 139 metres of trenching completed. The company anticipates receiving the remaining assay results by late January 2025, which will inform the maiden drilling campaign scheduled for the first quarter of 2025.

Western Australian Multi-Commodity Prospects

Complementing its Namibian uranium focus, Connected Minerals also acquired 100% ownership of three granted exploration licences in Western Australia. These licences cover a combined area of approximately 206 km² and offer potential for lead, copper, silver, gold, heavy minerals, and rare earth elements. The WA projects diversify the company’s portfolio and provide additional avenues for value creation.

Financial Position and Outlook

At quarter’s end, Connected Minerals held approximately $4.75 million in cash with no debt, reflecting a strong financial position to support ongoing exploration activities. Operating cash outflows increased slightly due to costs associated with the relisting and exploration ramp-up. The company also received a modest mining royalty payment from Focus Minerals, underscoring its diversified interests.

Looking ahead, the market will be watching closely as Connected Minerals advances its maiden drilling program in Namibia, a critical step in validating the high-grade uranium potential indicated by recent surface sampling.

Bottom Line?

Connected Minerals’ $5.1 million capital raise and robust early exploration results set the stage for a pivotal drilling campaign that could redefine its uranium prospects in Namibia.

Questions in the middle?

• Will the upcoming drilling confirm the high-grade uranium mineralisation suggested by rock chip samples?
• How will the company balance exploration efforts between its Namibian uranium projects and Western Australian multi-commodity licences?
• What are the potential timelines and capital requirements beyond the maiden drilling phase for resource definition?