Cosmo Launches $1.55M Entitlement Offer at 1 Cent to Fund Key Projects

Capital Raising to Fuel Exploration Momentum

Cosmo Metals Ltd (ASX, CMO) has announced a fully underwritten non-renounceable entitlement offer to raise approximately $1.55 million. The offer, priced at 1 cent per new share, aims to fund near-term drilling programs targeting gold and copper at its key projects in Western Australia and New South Wales.

The capital raise is structured on a five-for-fourteen basis, allowing eligible shareholders to acquire new shares at a 20% discount to the recent trading price. Additionally, shareholders will receive one free attaching option for every four shares subscribed, exercisable at 1.5 cents until April 2028.

Focus on High-Impact Drilling Projects

The funds will primarily support exploration at the Kanowna Gold Project, located just 13 kilometres northeast of Kalgoorlie, adjacent to Northern Star’s substantial Kanowna Belle gold mine. This proximity places Cosmo in a promising position to uncover significant gold resources.

In parallel, Cosmo will advance drilling preparations at the underexplored Bingara and Nundle projects in the New England Orogen of northern NSW. These projects cover a vast 743 square kilometres and hold potential for gold, antimony, and copper mineralisation, with limited modern exploration conducted over the past three decades.

Additional funds will also support exploration activities at the Yamarna Base Metals Project and general corporate overheads, ensuring the company maintains operational momentum across its portfolio.

Strong Support from Major Shareholders and Management

The entitlement offer has received strong backing from both new and existing high net worth investors. Notably, major shareholder Great Boulder Resources has committed to take up its full entitlement, representing approximately 14% of the raise. Cosmo’s Managing Director, Ian Prentice, has also committed to participate and sub-underwrite $40,000 of the offer.

Prentice expressed enthusiasm about the upcoming drilling campaigns, highlighting the opportunity to explore compelling gold discoveries near Kalgoorlie and the high-conviction targets in NSW. He emphasised the importance of the fully underwritten structure in providing shareholders with participation opportunities while attracting quality new investors.

Next Steps and Market Implications

The entitlement offer is scheduled to open on 18 February and close on 9 March 2026. Following the raise, Cosmo will focus on executing its drilling programs, with market participants keenly awaiting results that could validate the company’s exploration strategy and potentially enhance its resource base.

Shareholders will also vote on the issue of options to sub-underwriters and lead managers at a general meeting expected in late March, which could further influence the company’s capital structure.