Octava Secures Federation Project and Raises $1.5M to Fuel Exploration
Octava Minerals has secured a binding agreement to acquire the Federation Cu-Zn-Ag Project in Tasmania, reported promising bioleaching test results at its Byro REE-Li Project, and raised $1.5 million to fund exploration and working capital.
- Binding conditional agreement to acquire Federation Cu-Zn-Ag Project
- Historic drilling at Federation reveals significant copper, zinc, silver, and tin mineralisation
- Encouraging Stage 1 CSIRO bioleaching results on Byro rare earth and lithium ore
- Placement secured to raise $1.5 million for exploration and working capital
- No exploration activity at Yallalong and East Kimberley projects during the quarter
Federation Acquisition – A Strategic Expansion
Octava Minerals Limited (ASX – OCT) marked a productive quarter ending 30 June 2025, highlighted by a binding conditional agreement to acquire 100% of Magnes25 Pty Ltd, the holder of the Federation Copper-Zinc-Silver Project in Western Tasmania. This acquisition positions Octava to tap into a historically significant mineralised area near Zeehan, where late 1970s drilling by Renison uncovered substantial copper, zinc, silver, and tin intersections that were never fully explored.
The Federation Project covers two granted tenements spanning 121 square kilometres, strategically located near established mining infrastructure and hydro power stations. The geological setting on the margin of the Heemskirk Granite, combined with historic drill results such as 23 metres at 1.19% copper and 121 grams per tonne silver, suggests a compelling opportunity for Octava to delineate a potentially sizeable volcanogenic massive sulphide (VMS) system.
Byro Project – Promising Bioleaching Breakthroughs
Meanwhile, Octava’s Byro REE-Li Project in Western Australia’s Gascoyne region delivered encouraging Stage 1 bioleaching test results through a collaboration with CSIRO. The tests demonstrated that mixed microbial cultures readily adapted to the Byro ore samples, showing strong cell growth, ferrous iron oxidation, and acid generation, key indicators for effective bioleaching.
This biological extraction method, which leverages microorganisms to recover rare earth elements, lithium, and base metals from black shale deposits, could offer a cost-effective and environmentally friendly processing route. Stage 2 testing is now underway to quantify metal recovery potential, with results eagerly awaited by investors and industry watchers.
Capital Raise and Corporate Developments
To support its exploration ambitions, Octava secured firm commitments to raise approximately $1.5 million through a placement of around 50 million shares at 3 cents each, accompanied by free attaching options exercisable at 8 cents. The placement proceeds will fund exploration at Federation and Byro, as well as general working capital. The raise is structured in two tranches, with the second tranche and options subject to shareholder approval.
Additionally, the company proposed a performance rights package for its board, aligning management incentives with shareholder value creation. Octava ended the quarter with a healthy cash position of $1.1 million and no debt, having spent $55,000 on exploration activities, primarily focused on geological modelling and metallurgical testwork.
Other Projects and Outlook
No exploration was conducted at the Yallalong antimony-nickel-copper project or the East Kimberley nickel-PGM project during the quarter. Octava continues to seek partners for Yallalong and maintains a farm-in joint venture with Future Metals NL at East Kimberley.
Looking ahead, Octava plans to advance exploration at Federation with geological mapping, geophysical surveys, and drilling, while continuing metallurgical testwork at Byro. The company’s strategic moves underscore its focus on base and critical minerals with strong market demand, positioning it well for potential resource discoveries and value growth.
Bottom Line?
Octava’s Federation acquisition and bioleaching progress set the stage for a pivotal exploration phase, with market eyes on upcoming drilling and metallurgical results.
Questions in the middle?
- What will the upcoming due diligence reveal about the Federation Project’s full resource potential?
- How effective will Stage 2 bioleaching prove in extracting rare earths and lithium from Byro ore?
- Will shareholder approval for the placement and performance rights proceed smoothly, enabling timely funding?
