Conico’s Trading Suspension Continues as Capital Raising and Legal Costs Weigh
Conico Ltd has resolved a key legal dispute and secured $1.4 million in convertible loans, setting the stage for a rights offer and share consolidation as it plans to resume trading.
- Settlement of Cartwright Drilling legal dispute with initial payment made
- Placement of $900,000 in convertible loans pending shareholder approval
- Planned additional $500,000 convertible loan placement managed by director-associated firm
- Company remains suspended from trading while finalizing capital raising and working capital plans
- Mt Thirsty Joint Venture under strategic review with further drilling planned
Legal Dispute Resolution and Project Interest
Conico Ltd (ASX – CNJ) has taken a significant step forward by settling its legal dispute with Cartwright Drilling Inc, making an initial payment of CAD$322,500 (approximately A$366,294) during the June 2025 quarter. This resolution extinguishes the company’s liability related to the dispute, removing a key overhang on its Greenland projects, Mestersvig and Ryberg. Interest in these projects remains strong, with Conico actively exploring opportunities to advance them now that the legal uncertainty has been addressed.
Capital Raising and Financial Position
During the quarter, Conico placed $900,000 in unsecured convertible loans, which are subject to shareholder approval at an upcoming general meeting. The company plans to raise an additional $500,000 through similar convertible loans managed by RM Corporate Finance Pty Ltd, a firm linked to Conico director Guy Le Page. These funds are earmarked for working capital and exploration activities, including at the Mt Thirsty Joint Venture and Greenland projects. While the company remains suspended from trading as it finalizes these capital raising plans and satisfies ASX requirements, it anticipates resuming trading soon with an update on a fully underwritten non-renounceable pro-rata rights offer and share consolidation.
Exploration and Strategic Review at Mt Thirsty
The Mt Thirsty project in Western Australia, a 50% joint venture with Horizon Minerals Ltd, remains a focal point for Conico. Although no exploration activities took place during the quarter, the company is actively investigating strategic and technical options to progress the project. Plans for further drilling are expected to be announced shortly, signaling ongoing commitment to advancing this polymetallic project.
Cash Flow and Operational Outlook
Conico’s cash flow during the quarter reflected the impact of the legal settlement, with a net operating cash outflow of $389,000. Despite this, the company ended the quarter with $529,000 in cash reserves, providing approximately 1.36 quarters of funding based on current outgoings. Management has clarified that the elevated legal and corporate costs are not expected to continue at this level, and the company is confident in its ability to manage expenditures prudently until further capital is raised.
Looking Ahead
With the legal dispute behind it and capital raising efforts underway, Conico is positioning itself for a renewed phase of exploration and development. The upcoming shareholder meetings and announcements regarding the rights offer and share consolidation will be critical milestones. Investors will be watching closely for updates on the timing of trading resumption and the strategic direction for both the Greenland projects and Mt Thirsty Joint Venture.
Bottom Line?
Conico’s next moves on capital raising and project advancement will be pivotal as it seeks to regain market momentum.
Questions in the middle?
- Will shareholders approve the convertible loans and rights offer as planned?
- What is the updated timeline for resuming trading on the ASX?
- How will further drilling at Mt Thirsty impact Conico’s valuation and project prospects?