Desert Metals Secures $1.25M to Boost Côte d’Ivoire Gold Exploration

Capital Raising to Propel Exploration

Desert Metals Limited (ASX, DM1) has successfully secured firm commitments for a $1.25 million placement aimed at accelerating gold exploration activities in Côte d’Ivoire. The capital raise, strongly supported by existing shareholders and new sophisticated investors, will fund key programs at the Tengrela South and Adzope projects, two of the company’s flagship assets in West Africa.

The placement involves issuing approximately 192 million new shares at a price of 0.65 cents each, with the first tranche expected to close by mid-December 2025. A second tranche, including 45 million options exercisable at 1.3 cents, awaits shareholder approval in early 2026. This phased approach balances immediate funding needs with governance oversight.

Focused Drilling at Tengrela South’s Tiogo Prospect

At the heart of Desert Metals’ exploration push is a planned 6,000-metre aircore drilling program targeting the Tiogo prospect within the Tengrela South permit. This area has already yielded encouraging results, including wide, high-grade gold intercepts such as 12 metres at 4.20 grams per tonne from 32 metres depth, and 8 metres at 6.47 grams per tonne from 6 metres.

These promising intercepts suggest a potentially significant gold system that remains open and largely untested along a continuous 900-metre zone. The upcoming drilling campaign aims to delineate the extent and grade of mineralisation, which could materially enhance the project’s value and attract further investment.

Expanding Exploration at Adzope

Meanwhile, Desert Metals is embarking on its first comprehensive permit-wide stream sediment sampling program at the Adzope gold project, where 95% of the permit remains unexplored. This regional geochemical survey will help identify new target zones by detecting gold anomalies in sediments, a method particularly useful in areas with extensive artisanal mining activity.

The Adzope project covers a substantial 228 square kilometres in southern Côte d’Ivoire, and the data gathered will guide future drilling and exploration priorities. Results from both the Tengrela South drilling and Adzope sampling are anticipated in the first quarter of 2026, setting the stage for potential resource upgrades or new discoveries.

Strategic Outlook and Market Implications

Desert Metals’ Managing Director Stephen Ross emphasised the strategic importance of this capital raise, noting that it not only supports immediate exploration but also allows the company to continue assessing new project opportunities to complement its existing portfolio. The involvement of CPS Capital Group as lead manager adds credibility and signals confidence from professional investors.

While the placement dilutes existing shareholders, the injection of funds is critical for maintaining momentum in a competitive gold exploration sector. The market will be watching closely for the upcoming exploration results, which could validate Desert Metals’ strategy and potentially re-rate the stock.