Conico Faces C$1.34M Legal Liability, Eyes Mt Thirsty Scoping Study Update

Greenland Legal Dispute Casts Shadow Over Mestersvig and Ryberg Projects

Conico Ltd’s March 2025 quarterly report reveals the company remains embroiled in a costly legal dispute with Cartwright Drilling concerning outstanding invoices from the 2022 Greenland drilling season. An arbitration ruling assigned joint and several liability to Conico and Longland for approximately C$951,420 related to Ryberg drilling, plus additional amounts for Mestersvig. Despite this, no field activities occurred during the quarter as Conico continues to negotiate a settlement, with an update promised to shareholders soon.

This unresolved liability poses a financial and operational challenge, potentially impacting Conico’s ability to advance its Greenland projects in the near term. The legal costs incurred during the quarter underscore the dispute’s ongoing burden on the company’s resources.

Mt Thirsty Project: Strategic Review and Technical Optimisation in Focus

Meanwhile, Conico’s 50%-owned Mt Thirsty PGE-Ni-Co-Mn-Sc project in Western Australia is progressing through a critical phase of strategic and technical reassessment. The Board is exploring options to update the previously unreleased 2023 Scoping Study, including potential further drilling and the adoption of high-pressure acid leaching (HPAL) technology.

Significantly, the project is evaluating production of precursor cathode active material (pCAM), a higher-value battery input product that could command a pricing premium over traditional intermediates. Mt Thirsty’s unique mineral composition, rich in nickel, cobalt, and manganese, positions it well to produce the preferred 811 pCAM product, potentially enhancing revenue and payable metal content.

This pivot towards advanced processing methods reflects a broader industry trend prioritising ethical and sustainable sources of critical battery metals outside geopolitically sensitive regions such as the Democratic Republic of the Congo and Russia.

Capital Raising and Corporate Outlook

Conico’s cash flow statements reveal limited cash reserves, with only A$11,000 in cash and ongoing expenditure on administration and legal matters. The company acknowledges less than one quarter of funding is currently available to sustain operations at existing outgoings.

To address this, Conico plans to raise capital imminently, a move expected to underpin the lodging of its Half Year Report for the period ending December 31, 2024, and facilitate the resumption of trading on the ASX. The Board expresses confidence in securing the necessary funding to continue advancing its projects and exploring new mineral opportunities both in Australia and abroad.

Looking Ahead: Opportunities and Risks

While the Greenland legal dispute remains a cloud over Conico’s near-term prospects, the strategic repositioning of the Mt Thirsty project towards higher-value battery materials production offers a compelling growth narrative. The company’s ability to successfully raise capital and execute on these technical enhancements will be critical to unlocking shareholder value.

Investors should watch closely for updates on the legal settlement, the details of the capital raise, and the outcomes of the Mt Thirsty scoping study revisions, which collectively will shape Conico’s trajectory in the competitive battery metals sector.