Funding Crunch Looms as Clara Advances Ashford and Reviews Kildanga Asset

• Updated 2025 JORC Resource report to increase measured coal resources confidence
• Planned drilling program contingent on funding to refine mining and processing plans
• Strategic review underway for Kildanga Nickel/Cobalt project including potential divestment
• Two-tranche placement raised approximately A$600,000, with shareholder approval pending for second tranche
• Exploration expenditure of $148,000; no production activities during the quarter

Ashford Project Update

Clara Resources Limited (ASX – C7A) has made notable progress on its Ashford Coking Coal Project in New South Wales, with an updated JORC Resource report expected to enhance confidence in the quality and structural continuity of its coal seams. While the total resource volume is not anticipated to change significantly from the 2017 report, the inclusion of additional historic drill hole and pit survey data is likely to upgrade some resources to the Measured category, a critical step for advancing project feasibility.

The company has prepared for a targeted drilling program on exploration licence EL6234, pending sufficient funding. This program will include four cored holes and eight chip holes designed to verify seam depth, thickness, and quality, including coking properties and washability. The data collected will feed into a pre-feasibility study, refining mining plans, coal preparation processes, and cost models.

Kildanga Strategic Review

Separately, Clara is conducting a strategic review of its Kildanga Nickel/Cobalt project in Queensland. The review considers all options, including potential divestment of the project and the sale of a land block within the tenement area. This signals a possible shift in focus or capital allocation as the company prioritises its coal assets.

Capital Raising and Corporate Actions

To support its activities, Clara successfully raised approximately A$600,000 through a two-tranche placement of new shares priced at A$0.003 each. The first tranche raised A$230,000 and was completed under existing placement capacity, while the second tranche, expected to raise A$370,000, awaits shareholder approval at an Extraordinary General Meeting scheduled for 5 August 2025. The placement includes participation from related parties, subject to approval.

The EGM will also consider share issues to directors and contractors in lieu of fees, as well as options for lead managers involved in the placement. These corporate actions reflect ongoing efforts to manage cash flow and incentivise key personnel amid a challenging funding environment.

Financial and Operational Snapshot

Exploration and evaluation expenditure for the quarter was $148,000, focused on landholder engagement and cultural heritage clearances. There were no production or development activities during the period. The company’s cash position stood at $334,000 at quarter-end, with an estimated funding runway of just 0.21 quarters without additional capital. However, Clara expects to continue operations and commence drilling at Ashford as funding allows, supported by the recent capital raise.

Notably, the company’s exploration licence EL6428 was renewed for three more years post-quarter, and an extension application for EPM19366 has been submitted, indicating ongoing commitment to its exploration portfolio. Clara also relocated its corporate office to Brisbane, Queensland, reflecting possible strategic or operational shifts.

Bottom Line?

Clara’s upcoming drilling results and shareholder meeting outcomes will be pivotal in shaping its near-term trajectory and funding outlook.

Questions in the middle?

• Will the planned drilling at Ashford confirm the anticipated upgrade to Measured resources?
• What strategic decisions will emerge from the Kildanga project review, and how might they impact Clara’s portfolio?
• Can the company secure sufficient funding beyond the current placement to sustain operations and development?