Conico Ltd has finalised a major recapitalisation and corporate restructure, positioning itself for renewed exploration with a focus on scandium amid strong market demand. The company plans an extensive drilling program at its Mt Thirsty project to expand its scandium resource.
- Recapitalisation completed with $2.8 million raised through share placement and rights offer
- Debt settled via share issues, leaving Conico debt-free and well-funded
- Board refreshed with new Executive Chairman and technical expertise added
- Mt Thirsty JV to launch significant drill program targeting high-grade scandium zones
- Greenland projects under active evaluation amid shifting geopolitical landscape
Recapitalisation and Corporate Restructure
Conico Ltd (ASX – CNJ) has successfully completed a comprehensive recapitalisation and corporate restructure during the December 2025 quarter. The company raised approximately $300,000 through a share placement and followed up with an underwritten entitlement offer in January 2026 to raise an additional $2.5 million before costs. These capital raising efforts, combined with the conversion of approximately $1.4 million in loans and accrued fees into shares, have eliminated the company's debt and strengthened its balance sheet.
This financial reset provides Conico with the necessary funding to pursue its near-term exploration objectives without the burden of debt, a significant milestone for a junior explorer navigating the capital-intensive mining sector.
Board Renewal and Strategic Focus
Alongside the financial restructuring, Conico has refreshed its board to sharpen its exploration and project generation focus. Guy Le Page transitioned from non-executive director to Executive Chairman, bringing leadership continuity and renewed strategic direction. The appointment of Simon Mitchell, a seasoned geologist with over 30 years of experience, as a non-executive director further bolsters the company’s technical capabilities.
These changes signal Conico’s commitment to leveraging technical expertise to advance its projects, particularly in the critical minerals space where geological insight is paramount.
Mt Thirsty Project – Scandium in the Spotlight
The Mt Thirsty joint venture, equally owned by Conico and Horizon Minerals Limited, is gearing up for an extensive aircore and reverse circulation drilling campaign in the second quarter of 2026. The program aims to expand the scandium component of the mineral resource, capitalising on recent intersections exceeding 40 grams per tonne of scandium.
Scandium prices remain robust, driven by growing demand for scandium-aluminium alloys in aerospace and a strategic push to diversify supply away from China, which currently dominates global production. Prices vary widely depending on purity and quantity, with bulk industrial orders around US$700 per kilogram and premium grades fetching over US$4,000 per kilogram. Long-term forecasts suggest prices may stabilise between US$700 and US$1,000 per kilogram as demand scales.
Given scandium’s critical role in advanced materials and defence applications, Conico’s focus on this metal aligns with broader market trends and supply chain diversification efforts.
Greenland Projects and Future Opportunities
Conico continues to evaluate its 100% owned Greenland projects, Mestersvig and Ryberg, in light of recent geopolitical developments that may enhance the strategic value of these assets. While no immediate drilling is planned, the company is actively considering options to advance these projects.
Additionally, the board remains open to acquiring new exploration opportunities across various commodities and jurisdictions, aiming to build a diversified portfolio of critical mineral assets.
Financial and Operational Overview
Exploration expenditure for the quarter totalled $220,000, primarily related to Greenland licence renewals and tenement management at Mt Thirsty. The company also settled a $356,000 legal dispute, a non-recurring cost that clears the path for smoother operations going forward.
With no mining production or development activities during the quarter, Conico’s focus remains firmly on exploration and project generation, supported by a clean balance sheet and fresh capital.
Bottom Line?
Conico’s recapitalisation and strategic refocus set the stage for a pivotal year of exploration, with scandium poised as a key growth driver.
Questions in the middle?
- Will the upcoming Mt Thirsty drilling confirm a significant scandium resource expansion?
- How will scandium price volatility impact Conico’s project economics and funding needs?
- What strategic moves will Conico make regarding its Greenland assets amid geopolitical shifts?