Cosmo Metals Limited has announced a fully underwritten entitlement offer to raise approximately $1.55 million, aimed at advancing drilling and exploration across its key gold and base metals projects. The offer includes new shares and attaching options, with funds earmarked for multiple projects in Western Australia and New South Wales.
- Fully underwritten entitlement offer to raise $1.55 million
- Issuance of 155 million new shares at $0.01 each with attaching options
- Funds allocated to drilling at Kanowna Gold, Bingara, Nundle, and Yamarna projects
- Shortfall offer and options to joint lead managers and sub-underwriters subject to shareholder approval
- Directors disclosed with some participating as sub-underwriters
Capital Raising Details
Cosmo Metals Limited (ASX, CMO) has launched a non-renounceable entitlement offer to raise up to approximately $1.55 million before costs. Eligible shareholders can subscribe for five new shares for every fourteen shares held as of the record date, at an issue price of $0.01 per share. Additionally, one attaching option is offered for every four new shares subscribed, exercisable at $0.015 until April 2028.
The offer is fully underwritten by Discovery Capital Partners Pty Ltd, with joint lead managers Discovery Capital and Cumulus Wealth overseeing the capital raising. The entitlement offer is complemented by a shortfall offer, allowing additional investors to apply for any unsubscribed shares, subject to regulatory and shareholder approvals.
Use of Funds and Project Focus
Funds raised will primarily support exploration and drilling activities at Cosmo Metals’ key projects. This includes the Kanowna Gold Project and Yamarna Region Projects in Western Australia, and the Bingara and Nundle Projects in New South Wales. The company plans to undertake geological mapping, soil sampling, geophysical surveys, and reverse circulation and diamond drilling programs.
Specifically, the Kanowna Gold Project will benefit from drilling activities, including a co-funded diamond drill hole at the Laguna Verde prospect under the WA Government’s Exploration Incentive Scheme. The Bingara and Nundle Projects, located in a historically mineral-rich region, will also see increased exploration efforts aimed at uncovering high-grade gold, antimony, and copper mineralisation.
Capital Structure and Shareholder Impact
Assuming full subscription, the offer will increase the total shares on issue from approximately 434 million to 589 million, with options rising from 189 million to over 315 million. The company has disclosed potential dilution scenarios, noting that shareholders who do not participate fully may experience dilution of up to 26%. However, those who fully subscribe will maintain their proportional ownership.
Directors have disclosed their intentions to participate in the entitlement offer and as sub-underwriters for the shortfall, with Managing Director Ian Prentice committing to both. The issuance of options to joint lead managers and sub-underwriters is subject to shareholder approval at a general meeting expected in late March 2026.
Risks and Market Context
Cosmo Metals is a small, speculative mineral exploration company with inherent risks typical of the sector, including the need for ongoing capital, exploration uncertainties, and reliance on key personnel. The company has not yet achieved profitability and faces risks related to environmental approvals, tenement tenure, and market conditions.
The offer price of $0.01 per share is near the recent trading lows, with the share price ranging between $0.011 and $0.024 over the past three months. The company’s exploration activities and the success of this capital raising will be critical to its future development and market performance.
Next Steps and Timetable
The entitlement offer opened on 18 February 2026 and closes on 9 March 2026, with new shares expected to commence trading on ASX shortly after allotment. Shareholder approval for the issue of lead manager and sub-underwriter options is scheduled for a general meeting in late March. Investors and shareholders will be watching closely for subscription uptake and exploration results that could influence the company’s trajectory.
Bottom Line?
Cosmo Metals’ fully underwritten $1.55 million entitlement offer sets the stage for critical exploration work, but subscription levels and project outcomes will be key to unlocking shareholder value.
Questions in the middle?
- Will the entitlement offer achieve full subscription or rely heavily on underwriters?
- How will exploration results from Kanowna, Bingara, and Nundle influence the company’s valuation?
- What are the implications of potential dilution for existing shareholders if the shortfall is significant?