Chilwa Boosts Mposa Resource to 25.65Mt, Raises A$8m, Validates REE Targets

Dual-Commodity Strategy Advances in Malawi

Chilwa Minerals Limited (ASX – CHW) has reported significant progress in its December 2025 quarter, advancing its dual-commodity focus on rare earth elements (REE) and heavy mineral sands (HMS) within the Lake Chilwa region of southern Malawi. The company’s systematic approach to exploration and resource development is beginning to yield tangible results, underpinning its strategic growth ambitions.

Rare Earth Elements – Confirming Targets and Mineralisation

During the quarter, Chilwa completed extensive soil geochemical sampling across its Lake Chilwa licenses, confirming anomalous REE pathfinder signatures across 47 interpreted targets. These findings provide a robust technical foundation for prioritising follow-up drilling programs. Notably, initial diamond drilling at the high-priority Mpyupyu carbonatite complex validated the presence of REE mineralisation, confirming the company’s exploration model that targets carbonatite-hosted deposits along regional structural corridors. This milestone not only demonstrates the district-scale prospectivity of the region but also sets the stage for more targeted drilling campaigns in 2026, including the initiation of an ionic clay assessment program.

Heavy Mineral Sands – Resource Upgrade and Development Optionality

Chilwa also delivered an updated Mineral Resource Estimate (MRE) for its Mposa HMS deposit, increasing the total resource to 25.65 million tonnes, with approximately 83% now classified in the Measured category. This upgrade reflects enhanced geological confidence driven by high-density sonic drilling and refined stratigraphic interpretation. The inclusion of valuable minerals such as monazite, garnet, and leucoxene within the resource estimate adds further value. Concurrent drilling at the nearby Mpyupyu deposits is ongoing, with assay and QEMSCAN results pending to inform a revised resource estimate. The strengthened resource base provides a solid platform for advancing mine planning and development studies.

Corporate Developments and Capital Position

On the corporate front, Chilwa appointed José Martins, a seasoned executive with over 25 years’ experience in mining finance and corporate governance, to its board. The company also successfully completed an A$8 million private placement at $1.20 per share, anchored by the Mota family office and supported by board members. This capital injection is earmarked to accelerate exploration and early development activities, underpinning the company’s growth trajectory. At quarter-end, Chilwa held cash reserves of A$3.59 million, with ongoing efforts to secure additional funding through a planned US$10 million capital raise aligned with its Nasdaq dual-listing ambitions.

Strategic US Nasdaq Dual Listing Progress

Chilwa is actively progressing its strategy to list on the US Nasdaq exchange, aiming to tap into larger and more diverse capital markets. Key milestones include engaging a New York investment bank to manage the IPO process, appointing US legal counsel, and transitioning to a US PCAOB-registered audit firm. The company is preparing an SEC registration statement and Nasdaq listing application, alongside establishing an American Depositary Receipt (ADR) program to facilitate US investor participation. These efforts coincide with high-level engagements with the US Embassy and State Department in Malawi, reflecting growing diplomatic support for critical minerals development in Sub-Saharan Africa.

Looking ahead, Chilwa plans to ramp up its diamond drilling program with a second rig, complete updated resource estimates for its mineral sands deposits, and advance a scoping study to define project economics. The company remains committed to sustainable development and stakeholder engagement as it navigates the next phase of its growth.