Kuniko Launches 1-for-3 Rights Issue at A$0.07 with A$1.2M Underwriting Backing
Kuniko Limited has launched a partially underwritten rights issue to fund exploration at its Commonwealth Gold-Silver Project in New South Wales, aiming to capitalise on high-grade multi-metal potential in a Tier-1 jurisdiction.
- 1-for-3 non-renounceable rights issue at A$0.07 per share with free attaching options
- GBA Capital underwriting up to A$1.2 million of the rights issue shortfall
- Earn-in agreement to acquire up to 70% of Commonwealth Gold-Silver Project
- Drilling approvals and landholder access secured for rapid exploration start
- Diversified portfolio includes Australian precious metals and Norwegian battery metals
Funding Certainty Through Underwritten Rights Issue
Kuniko Limited (ASX – KNI) has taken a decisive step to advance its Commonwealth Gold-Silver Project in New South Wales by launching a 1-for-3 non-renounceable rights issue priced at A$0.07 per share. The offer includes free attaching options exercisable at A$0.14 over two years, providing shareholders with an attractive incentive to participate. Crucially, the rights issue is partially underwritten by GBA Capital to the tune of A$1.2 million, offering funding certainty and reducing execution risk for the company.
Strategic Expansion into Tier-1 Jurisdiction
The Commonwealth Project sits within the Lachlan Fold Belt, a historic and well-established mining district known for its rich deposits of gold, silver, zinc, lead, and copper. Kuniko’s two-stage earn-in agreement allows it to acquire up to 70% of this multi-metal asset, complementing its existing portfolio of battery metals projects in Norway. The project’s location in a Tier-1 jurisdiction with existing infrastructure and regulatory approvals positions Kuniko to rapidly mobilise exploration activities.
Near-Term Exploration Catalysts
With drilling approvals and landholder access already secured, Kuniko plans to commence Stage-1 technical work immediately. This includes refining drill designs over a deep conductor beneath the Commonwealth site and step-out targets at Silica Hill. The company anticipates drilling to begin early in this stage, potentially unlocking high-grade mineralisation that has been confirmed by historic drilling results.
Diversified Portfolio and Ethical Commitment
Beyond Australia, Kuniko maintains a diversified portfolio of battery metals projects in Norway, including nickel, copper, cobalt, and PGE targets. The company emphasises ethical sourcing and environmental responsibility, aligning its operations with global energy transition goals and the United Nations Sustainable Development Goals. This dual focus on precious and battery metals positions Kuniko to benefit from evolving market demands for critical minerals.
Shareholder Participation and Future Outlook
The rights issue closes on 12 September 2025, and shareholder support will be pivotal in enabling Kuniko to execute its exploration plans without delay. The underwriting arrangement with GBA Capital mitigates funding risk, but the company’s ability to deliver on exploration milestones will be closely watched by investors. As Kuniko moves forward, its progress at the Commonwealth Project could serve as a key valuation driver amid a competitive mining sector.
Bottom Line?
Kuniko’s underwritten rights issue sets the stage for rapid exploration in a promising Tier-1 district, with shareholder backing critical to unlocking value.
Questions in the middle?
- Will shareholder uptake meet expectations to fully fund the Commonwealth Project’s Stage-1 drilling?
- How will results from the upcoming drilling campaign influence Kuniko’s strategic focus between precious and battery metals?
- What are the potential impacts of the underwriter options approval on shareholder dilution and control?