Kuniko’s Funding and Project Risks Loom as Strategic Deals Remain Unfinalised

Strategic Repositioning in Battery Metals

Kuniko Limited continues to advance its position as a key player in the European battery metals sector, focusing on copper, nickel, cobalt, and lithium projects in Norway. The company’s recent quarterly report highlights steady progress in its strategic repositioning, driven by partnerships and funding initiatives aimed at establishing a sustainable and ethically sourced battery supply chain.

Central to this effort is Kuniko’s submission of a NOK 60 million (~A$9 million) application under Norway’s Green Platform initiative. This funding, if approved, will support the Min2Mob project; a consortium-led effort involving automotive giant Stellantis and leading Norwegian research institutions; to develop a low-carbon battery metals supply chain sourced from Kuniko’s Ringerike and Skuterud projects.

Innovative Exploration and Technology Integration

Kuniko is also leveraging cutting-edge technology through its collaboration with the European Union Agency for the Space Programme (EUSPA), Novaspace, and TerraEye. The pilot program utilises satellite and hyperspectral data to enhance mineral targeting across Kuniko’s Norwegian licenses. With a two-year software access license granted, this initiative positions Kuniko at the forefront of integrating AI and remote sensing into mineral exploration, potentially accelerating discovery and development timelines.

Financial and Corporate Developments

Financially, Kuniko has refinanced its existing working capital facilities, extending its funding runway without immediate shareholder dilution. The company drew on a second unsecured loan facility and restructured terms to maintain operational flexibility during this active phase of strategic development. To further support its growth ambitions, Kuniko plans to launch a rights issue, allowing existing shareholders to participate in funding upcoming initiatives.

Corporate changes include board transitions and a relocation of the company’s headquarters to Perth, Western Australia, aligning management closer to key stakeholders while maintaining operational focus in Europe. The company also continues to prioritise capital discipline, with ongoing cost optimisation and a streamlined project portfolio focused on high-potential assets.

Project Portfolio and ESG Commitment

Kuniko’s Norwegian project portfolio remains robust, anchored by the Ertelien Nickel-Copper-Cobalt project with a JORC-compliant resource of 40 million tonnes at 0.25% nickel equivalent. The Skuterud Cobalt project, historically a major cobalt producer, shows promising cobalt intercepts from recent drilling. The Vågå Copper project adds further diversity with high-grade copper-zinc mineralisation identified.

Environmental, social, and governance (ESG) considerations are integral to Kuniko’s operations. The company commits to ethical sourcing, low carbon footprint targets, and alignment with the EU Critical Raw Materials Act and Norway’s National Battery Strategy. Stakeholder engagement and responsible mining practices remain priorities as Kuniko advances its projects.

Looking Ahead

With the Green Platform funding decision expected in the fourth quarter of 2025, Kuniko is poised to transition from strategic repositioning to active development. The upcoming rights issue and ongoing transaction discussions for portfolio diversification will be key catalysts. Investors will be watching closely to see how these developments translate into value creation and market re-rating.