ActivEX Eliminates $5M Debt, Raises $815K, Advances Queensland Exploration

Debt-Free Balance Sheet Strengthens ActivEX

ActivEX Limited (ASX:AIV) took a significant step in its financial restructuring during the March quarter by executing a debt-to-equity conversion with Star Diamond Developments Limited. This transaction extinguished the company's entire $5 million unsecured loan facility plus accrued interest by transferring 100% equity of its East Coast Gold and Copper subsidiary to Star Diamond, leaving ActivEX completely loan debt free as of 31 March 2026. This move considerably strengthens the company’s balance sheet and financial position, providing a cleaner platform for its exploration ambitions.

The debt conversion follows the recent sale of the East Coast Gold Copper tenements, a non-core asset, which had been tied to the loan facility. This strategic divestment aligns with ActivEX's focus on advancing its core Queensland projects. The company’s cash position also improved markedly, ending the quarter with $789,000 in cash, supported by a successful $815,000 placement to investors during the period. These funds are earmarked for ongoing exploration and general working capital needs.

Capital Raising Complements Exploration Push

ActivEX completed two placements in March 2026, issuing over 40 million shares at $0.02 each to investors including Xuan Dong, Ah Ching Wong, and Xinwei Chen. The $815,000 raised builds on previous capital raises earlier in the year, underpinning planned drilling and survey activities across its portfolio. The placements are subject to 12-month voluntary escrow, signaling investor confidence in the company’s medium-term prospects.

This recent funding round follows earlier placements totaling $421,752 and $393,505, as reported in March, which also supported exploration and working capital. The steady flow of capital injections reflects ActivEX’s strategy to maintain sufficient liquidity while advancing multiple projects simultaneously. The company paid $35,000 in director fees during the quarter, consistent with governance norms.

Exploration Advances at Gilberton and Westgrove

The Gilberton Gold Project remains a flagship asset, with ActivEX working on upgrading the JORC Inferred Mineral Resource Estimate following a 4,996-meter reverse circulation drilling campaign completed in 2025. The maiden resource stands at 8.5 million tonnes grading 1.13 g/t gold for 310,000 ounces, and further resource-based drilling is planned for later in 2026 to expand this footprint. The project’s geological setting near the world-class Kidston deposit adds context to its potential.

Meanwhile, at the Westgrove Rare Earth Elements (REE) Project, the company has finalised a Native Title Exploration Agreement with the Wardingarri Aboriginal Corporation RNTBC and lodged it with Queensland authorities. The final hurdle remains a meeting with the Gungarri Aboriginal Corporation RNTBC to finalise compensation and access agreements, which would enable the grant of key tenements including Doonkuna (EPM 29159). Once granted, exploration will target REE mineralisation within the Westgrove Ironstone Member, a ferruginous sedimentary unit with promising REE potential. This progress on native title matters is a critical step towards unlocking the project’s value.

Georgetown Project Marketed for JV or Sale

ActivEX has compiled historical data and geophysical surveys for its Georgetown Gold and Critical Metals Project, generating multiple high-priority targets for gold and base metals including copper, cobalt, and rare earth elements. An Information Memorandum has been circulated by AMETS to potential joint venture partners or buyers. The company is actively seeking partners or a sale to redirect funds to its core assets, reflecting a pragmatic approach to portfolio management.

Exploration plans for the Georgetown project include surficial geochemical sampling targeted for the second half of 2026, aiming to refine targets for subsequent drilling. The project’s location in the Proterozoic Etheridge Province places it within a mineral-rich corridor, enhancing its appeal to potential collaborators.

Aramac and Esk Projects Set for Upcoming Exploration

At the Aramac Rare Earth Elements and Base Metals Project, ActivEX has secured Notices of Entry from landholders, enabling surface exploration activities scheduled for the first half of 2026. The company plans grid-based soil and rock sampling, geological mapping, and a broad-spaced aircore drilling campaign to test REE and base metal mineralisation, particularly targeting the Wallumbilla Formation and Ronlow Beds. A proposal for a 100m-spaced aeromagnetic and radiometric survey under the Queensland Government’s Cooperative Exploration Initiative is pending, which could provide valuable geophysical data to guide drilling.

The Esk Copper and Gold Project, classified as a non-core asset and recently transferred to Star Diamond as part of the debt conversion, had seen limited recent activity. However, the project hosts multiple high-priority porphyry copper and epithermal gold targets. ActivEX’s strategic focus now lies with advancing its key Queensland projects, with the Esk asset effectively divested in the debt restructuring.

Financial Outlook and Funding Horizon

With cash of $789,000 and no outstanding debt, ActivEX estimates it has sufficient funding to cover approximately 4.5 quarters of operating and exploration expenditure at current levels. This runway supports planned drilling and survey work across its portfolio, including the critical resource upgrade at Gilberton and the pending exploration at Westgrove and Aramac. The company’s financial discipline and strategic capital management position it well to navigate the exploration cycle ahead.

Investors will note the company’s deliberate approach to managing its asset base, capital structure, and operational focus, which may influence upcoming announcements on JV partnerships or asset sales, particularly concerning the Georgetown project. The timing and success of native title agreements and tenement grants remain key variables to watch.

ActivEX’s recent moves underscore a transition from debt-laden exploration to a more streamlined, capital-backed phase, setting the stage for potential resource growth and value creation in Queensland’s mineral-rich terrains.

These developments build on the company’s earlier capital raising efforts, including the recent $393K share placement and $421K share placement, which have underpinned its exploration funding and working capital needs.

Meanwhile, the full repayment of the Star Diamond loan facility and transfer of the East Coast Gold and Copper subsidiary were detailed in the company’s debt clearance and asset transfer announcement, highlighting the strategic reshaping of ActivEX’s balance sheet.