Kuniko Limited has raised A$3.75 million in a strongly supported placement to fast-track drilling and resource expansion at its Commonwealth Gold–Silver Project in NSW’s Lachlan Fold Belt. Phase I drilling is underway, with results expected in April 2026.
- A$3.75 million placement backed by institutional and existing shareholders
- Funds to accelerate Phase II drilling targeting resource validation and expansion
- Phase I diamond drilling underway with ~1,200m planned, results due April 2026
- New high-priority district-scale targets identified via recent MobileMT geophysical survey
- Placement shares issued in two tranches, second tranche subject to shareholder approval
Strong Backing for Growth
Kuniko Limited (ASX: KNI) has successfully secured firm commitments for a A$3.75 million placement at $0.053 per share, demonstrating strong confidence from both existing shareholders and new institutional investors. The capital injection is earmarked to accelerate exploration activities at the Commonwealth Gold–Silver Project, located in the highly prospective Lachlan Fold Belt of New South Wales, a region renowned for hosting major mining operations.
Drilling Programs Underway
The company has commenced Phase I diamond drilling, targeting approximately 1,200 metres across six holes designed to test extensions of known gold and silver mineralisation at key prospects including Silica Hill, Commonwealth Main, and Commonwealth South. These initial results, expected by April 2026, will provide critical data to validate and potentially expand the existing mineral resource estimates inherited from previous operators.
Unlocking District-Scale Potential
Complementing the drilling, Kuniko has identified a significant ~4 km gold-silver corridor through a recent MobileMT geophysical survey. This corridor links several prospects, Commonwealth Mine, Silica Hill, Coronation Mine, and Collings Prospect, and has revealed multiple high-priority drill targets. The company is advancing ground-truthing and permitting activities to enable rapid follow-up exploration.
Strategic Use of Placement Funds
The proceeds from the placement will not only support ongoing drilling but also facilitate systematic resource growth by integrating new geological insights and expanding the pipeline of targets. Kuniko’s Managing Director, Maja McGuire, emphasised the importance of this funding in accelerating the project’s development and unlocking its broader potential within a Tier-1 mining jurisdiction.
Placement Structure and Next Steps
The placement will be executed in two tranches, with the first tranche settling in late February 2026 and shares issued in early March. The second tranche, raising approximately A$2.05 million, is subject to shareholder approval at an upcoming Extraordinary General Meeting. Participants will also receive attaching options exercisable at $0.07, providing additional upside potential. The involvement of joint lead managers Alpine Capital and JP Equity Partners underscores the placement’s institutional support.
Bottom Line?
As drilling progresses and new targets emerge, Kuniko’s next results will be pivotal in defining the Commonwealth Project’s future trajectory.
Questions in the middle?
- Will Phase I drilling confirm extensions to known mineralisation and support resource upgrades?
- How will the newly identified MobileMT targets influence the project’s exploration strategy?
- What impact will shareholder approval of the second tranche have on Kuniko’s funding and timelines?