Cassius Mining Raises $5 Million via Convertible Notes with Interest and Conversion Features
Cassius Mining Limited (ASX:CMD) has raised $5 million through secured convertible notes to support its Soalara Limestone project development and international arbitration claim against Ghana, with a final hearing scheduled for June 2026.
- Raised $5 million through secured convertible notes to sophisticated investors
- Funds allocated to Soalara Limestone project, exploration, arbitration claim, and working capital
- Convertible notes carry 3.5% quarterly interest capitalised over two years
- Conversion price set at $0.03 per share or 20% discount to VWAP after June 2026
- Shareholder approval pending for second tranche and options at May 2026 EGM
Funding Secured to Advance Key Projects
Cassius Mining Limited (ASX:CMD) announced on 7 April 2026 that it has secured $5 million in funding through the issuance of secured convertible notes to sophisticated investors, led by GBA Capital Pty Ltd. The capital raise aims to provide the company with a funded pathway to progress its exploration and development activities, including advancing the Soalara Limestone project in Madagascar, as well as supporting its international arbitration damages claim against Ghana.
Convertible Notes Terms and Structure
The $5 million will be raised through 5 million secured convertible notes with a face value of $1 each, issued in two tranches. The first tranche of 1.95 million notes will be issued upfront under existing ASX Listing Rule 7.1 capacity, while the second tranche of 3.05 million notes is subject to shareholder approval at an extraordinary general meeting (EGM) expected in May 2026.
The notes carry a quarterly interest rate of 3.5%, which will be capitalised at the end of each calendar quarter, meaning no cash interest payments are required during the two-year loan term. The loan term may be extended by mutual agreement between Cassius and the noteholders.
Security over the company and its assets will be held by GAM Company Pty Ltd as trustee on behalf of the noteholders. Conversion rights allow noteholders to convert notes into shares at $0.03 per share until 30 June 2026, and thereafter at $0.03 or at a 20% discount to the five-day volume weighted average price (VWAP) until maturity.
Additionally, noteholders will receive eight free options for every $1 invested, exercisable at $0.03 with a three-year expiry, subject to shareholder approval at the upcoming EGM.
Use of Funds and Strategic Context
According to CEO James Arkoudis, the funds will be used to advance exploration activities, progress the Soalara Limestone project towards development, support the company’s damages claim against Ghana, and cover general working capital requirements. The arbitration claim relates to Cassius’s dispute over Ghana’s failure to renew a prospecting licence, with an updated independent expert damages assessment of approximately USD 905 million (AUD 1.32 billion) filed in late March 2026.
The final arbitration hearing is scheduled for 15–19 June 2026 at the Peace Palace in The Hague, Netherlands. This funding round follows previous capital raises, including a $1.16 million placement in December 2025 and ongoing joint venture discussions for the Soalara project, as detailed in recent company updates.
Fees and Shareholder Approvals
The lead manager, GBA Capital Pty Ltd, will receive a 5% capital raise fee on funds raised, along with fully paid ordinary shares valued at $175,000 issued at a 10% discount to the five-day VWAP at settlement. These broker shares and attaching options will also require shareholder approval at the May EGM.
The company has indicated that further details on the EGM will be provided to shareholders shortly. The completion of the second tranche and the issuance of options are contingent on shareholder approval, which may affect the total capital raised and potential dilution.
Bottom Line?
Cassius Mining’s recent funding provides financial support for its exploration and legal efforts, but key shareholder approvals and the outcome of the June arbitration remain pivotal.
Questions in the middle?
- Will shareholders approve the second tranche of convertible notes and associated options at the upcoming EGM?
- How might the arbitration hearing outcome in June impact Cassius Mining’s valuation and strategic direction?
- What progress can be expected on the Soalara Limestone project development following this funding round?
