Conico Raises $2.1M to Unlock High-Grade Scandium and Nickel Zones
Conico Ltd has launched a $2.1 million entitlement offer to fund exploration at its Mt Thirsty Joint Venture and progress projects in Greenland, while aiming to clear its debt through shareholder-approved loan conversions.
- Underwritten entitlement offer to raise approximately $2.1 million
- Funds targeted for Mt Thirsty drill program and Greenland project advancement
- Shareholder meeting set to approve converting loans and fee settlements in shares
- Quarterly cash flow shows $179k operating outflow and $858k cash balance
- No mining production during the quarter; focus remains on exploration and corporate restructuring
Capital Raising and Debt Conversion
Conico Ltd (ASX, CNJ) has announced a significant capital raising initiative through a non-renounceable entitlement offer aimed at securing approximately $2.1 million. This move follows a converting loan placement and is underpinned by an underwriting commitment, reflecting the company's strategic intent to bolster its financial position for upcoming exploration and working capital needs. The entitlement offer, scheduled with a record date of 17 December 2025, will be offered on a 1-for-1 basis to existing shareholders, with a prospectus to be dispatched around 22 December.
In tandem, Conico is seeking shareholder approval at its annual general meeting on 28 November 2025 to convert all outstanding converting loans and settle accrued director and advisor fees through share issuance. This approach aims to eliminate the company's debt, positioning it with a clean balance sheet to pursue its near-term objectives.
Exploration Focus, Mt Thirsty and Greenland Projects
The funds raised will primarily support a planned drilling program at the Mt Thirsty Joint Venture in Western Australia, where Conico holds a 50% interest. The upcoming aircore and reverse circulation drilling will target both the upper scandium-rich zone, which has previously yielded intersections exceeding 40 grams per tonne, and a deeper, potentially higher-grade nickel-cobalt-manganese-scandium zone outside the current resource boundary. Scandium's inclusion is expected to enhance the project's economics significantly, a factor not fully accounted for in prior feasibility studies.
Meanwhile, Conico continues to evaluate options to advance its 100%-owned Mestersvig and Ryberg projects in Greenland. These efforts follow the company's recent recapitalisation and resolution of a legal dispute, with further details on project progression anticipated in due course.
Financial Overview and Corporate Governance
The September quarter saw Conico report operating cash outflows of $179,000, primarily related to tenement management, board planning, and corporate activities. Despite no mining production or development during the period, the company ended the quarter with a cash balance of $858,000, bolstered by financing inflows of $508,000. The converting loans carry a 5% annual interest rate and are set to be converted into equity pending shareholder approval.
Conico's disciplined approach to managing its capital structure and exploration pipeline underscores its commitment to creating shareholder value while navigating the challenges typical of junior mining companies. The upcoming shareholder meeting and entitlement offer will be critical milestones in this journey.
Bottom Line?
Conico’s successful capital raise and debt conversion set the stage for a pivotal exploration phase, but market eyes will be on drill results and Greenland project developments next.
Questions in the middle?
- Will shareholder approval for loan conversions and fee settlements pass smoothly at the AGM?
- How will the upcoming drill results at Mt Thirsty impact Conico’s resource estimates and project valuation?
- What concrete plans and timelines will Conico reveal for advancing its Greenland projects?
