Desert Metals Issues 177.7 Million New Options Raising $177,747

Entitlement Offer Raises $177,747 for Exploration

Desert Metals Limited (ASX:DM1) has closed its recent non-renounceable pro-rata entitlement offer, securing $177,747 by issuing 177,746,685 new options priced at $0.001 each. The offer invited shareholders to acquire one new option for every two shares held, with each option exercisable at $0.015 until 31 December 2027. The issuance of these options is scheduled for 6 May 2026.

The entitlement offer was fully underwritten by CPS Capital Group Pty Ltd, who will also take up the shortfall of 147,630,337 options not subscribed by shareholders. This means the underwriter will subscribe for nearly 45% of the total 325,377,022 options available under the offer, ensuring the company raises the targeted funds.

Strategic Funding for Côte d’Ivoire Drilling Campaigns

The funds raised through this entitlement offer appear to be a continuation of Desert Metals’ recent capital raising efforts aimed at supporting exploration in Côte d’Ivoire. Earlier announcements outlined plans for aircore drilling at the Tiogo and Kakalogo gold prospects, with the entitlement offer designed to provide additional capital for these activities. The modest raise of $177,747 supplements a broader $325,000 option entitlement offer launched in April, which was also underwritten by CPS Capital Group and intended to fund the initial drilling phase in the region.

This drilling campaign follows high-grade gold intercepts reported at the Tiogo prospect, which lies within a promising mineralised corridor near Perseus Mining’s Sissingué gold mine. Desert Metals’ exploration strategy is focused on unlocking further value along this corridor, with ongoing assays and drilling results expected to inform the next steps.

Implications of the Underwritten Shortfall

The significant shortfall taken up by the underwriter suggests a conservative appetite among shareholders for this particular option issue, despite the company’s recent progress and exploration news. While the capital raised is relatively small, the fully underwritten structure ensures Desert Metals maintains flexibility and funding certainty as it advances its Côte d’Ivoire projects.

Investors will be watching the exercise of these options over the next 19 months, as the strike price of $0.015 offers a potential entry point for additional capital injections if exploration results justify further investment. The company’s ability to convert these options into shares could become a key factor in its funding profile and share capital structure moving forward.