Cosmo Metals Eyes NSW Gold-Copper Riches with $1.6M Capital Raise

Strategic Acquisition in a Historic Mining Belt

Cosmo Metals (ASX: CMO) has taken a decisive step to broaden its exploration footprint by entering into a Binding Heads of Agreement to acquire the Bingara and Nundle projects, two highly prospective gold, antimony, and copper portfolios located in the New England Orogen of northern New South Wales. This acquisition, subject to shareholder approval, offers Cosmo access to a combined area of approximately 743 square kilometres rich in historic mining activity and promising mineralisation.

The projects straddle a belt with over 40 kilometres of cumulative strike length encompassing the historic Bingara and Nundle goldfields. These areas are noted for their orogenic gold and antimony potential, alongside volcanic massive sulphide (VMS) and intrusion-related copper-gold mineralisation. Notably, the projects lie adjacent to Larvotto Resources’ Hillgrove Project, a globally significant antimony-gold deposit, underscoring the regional prospectivity.

Compelling Historical Data and Exploration Potential

Historical exploration and mining have revealed encouraging high-grade intercepts, including gold assays such as 6.0 metres at 6.43 g/t Au and copper grades reaching up to 18.6% Cu from oxide and primary sulphide zones. Despite this, much of the mineralisation remains underexplored or untested by modern techniques, with no drilling conducted in key areas since the mid-1990s.

Cosmo plans to leverage modern exploration methods, including a drone-operated Sub Audio Magnetotelluric (SAM) geophysical survey over the Mt Everest VMS trend and detailed geological mapping at Nundle. These efforts aim to refine drill targets and unlock the full potential of the projects’ multi-commodity mineralisation.

Funding the Next Phase with an Underwritten Capital Raise

To support the acquisition and subsequent exploration, Cosmo Metals has launched a fully underwritten non-renounceable 4-for-5 Entitlement Offer to raise approximately $1.6 million at an offer price of $0.015 per share. The offer includes attaching options exercisable at $0.03 with a three-year expiry, providing additional leverage for investors.

Major shareholder Great Boulder Resources has committed to take up its entitlement, representing about 19.1% of the offer, while the Cosmo board has pledged $110,000 in sub-underwriting. The capital raise proceeds will fund the acquisition completion, exploration and drilling at Bingara and Nundle, ongoing work at Cosmo’s Kanowna and Yamarna projects, and general corporate overheads.

A Transformational Moment for Cosmo Metals

Chairman Peter Bird described the acquisition as a transformational opportunity, positioning Cosmo to significantly expand its multi-commodity exploration efforts in a highly prospective emerging region. The focus on antimony is particularly timely given the growing global demand and supply security concerns for this critical mineral.

While the historical data provides a strong foundation, Cosmo acknowledges that these results predate current JORC reporting standards and will undertake rigorous validation and further exploration to confirm and extend mineralisation. The company has already commenced preliminary exploration activities during the exclusivity period to ensure a smooth transition into more advanced drilling campaigns.