Desert Metals opens 325 million option entitlement offer at $0.001 to raise $325K

Capital Raise Targets Exploration at Tiogo and Kakalogo

Desert Metals Limited (ASX:DM1) has officially opened its pro-rata entitlement offer, aiming to raise up to $325,377 through the issue of 325 million new options priced at $0.001 each. These options are exercisable at $0.015 before 31 December 2027, providing shareholders a low-cost opportunity to increase exposure to the company’s gold exploration projects in Côte d’Ivoire.

The funds raised will primarily back ongoing aircore drilling programs at the Tiogo and Kakalogo gold prospects within the Tengrela South permit area. These projects lie strategically 30km south of Perseus Mining’s operating Sissingué gold mine, adding regional significance to Desert Metals’ exploration push. The company plans to deploy the capital towards advancing these prospects alongside working capital and offer expenses.

Underwriting and Shareholder Participation Details

The entitlement offer is fully underwritten by CPS Capital Group Pty Ltd, which will receive a 6% fee on the total proceeds. This underwriting provides Desert Metals with a degree of certainty over the capital raise outcome, although the final subscription will depend on shareholder uptake.

Eligible shareholders are those registered by the 10 April 2026 record date with addresses in Australia or New Zealand and not acting for US persons. The offer is non-renounceable, meaning entitlements cannot be traded or sold, and closes at 5:00pm (WST) on 29 April 2026 unless extended. Shareholders can access the prospectus and personalised acceptance forms online or request paper copies if needed.

Exploration Momentum and Funding Context

This entitlement offer follows Desert Metals’ announcement of its ongoing drilling campaign targeting a 900m untested mineralised zone at Tiogo, part of a broader 6,000m program across Tiogo and Kakalogo. The initial phase of drilling at Tiogo was expected to complete within two weeks, with first assay results anticipated in early May 2026. The new raise complements earlier funding rounds, including a $1.25 million placement announced in January 2026, which accelerated the company’s exploration activities in Côte d’Ivoire.

Desert Metals’ strategy to secure incremental funding through options issuance reflects a cautious approach to capital management, balancing dilution concerns with the need to sustain exploration momentum. The company’s growing interest in the region, including an 80% stake in Tengrela South and Adzope projects, positions it to leverage potential discoveries in a prolific gold belt.

For investors tracking Desert Metals, the key upcoming catalyst will be the assay results from the Tiogo drilling program, which will provide early indicators of the exploration success funded in part by this entitlement offer. The interaction between funding rounds and exploration outcomes will be critical in shaping the company’s trajectory through 2026.

This announcement builds on the company’s earlier underwritten entitlement offer to fund Côte d’Ivoire drilling, reinforcing Desert Metals’ commitment to advancing its West African gold assets amid a competitive exploration landscape.