West Cobar Metals Reports $1.5M Cash, Expands Cobar West Tenure, Abandons Baxter Deal

Salazar Project Targets Scandium with Rare Earth Upside

West Cobar Metals (ASX:WC1) continues to advance its Salazar Critical Minerals Project in Western Australia, focusing on high-value scandium extraction. The project hosts a sizeable shallow saprolite deposit containing an inferred 15 million tonnes at 153 ppm Sc2O3, alongside substantial rare earth elements (REEs), titanium dioxide, gallium, and alumina resources. Notably, the rare earth element profile includes an unusually high 16% yttrium content of total REOs, an element currently in supply tension outside China and critical for advanced technologies.

Metallurgical testwork is progressing to validate low-cost processing routes, including heap leach and bioleaching methods, aiming to optimise scandium recovery and overall project economics. Aircore drilling targeting high-grade scandium zones is also underway, positioning Salazar for near-term development milestones. The company is actively engaging with US government funding programs to support project advancement, reflecting the strategic importance of critical minerals supply chains.

Cobar West Expansion Unlocks Multiple Copper Targets

In New South Wales, West Cobar has expanded its district-scale tenure to approximately 1,090 square kilometres along 120 kilometres of prospective Cobar Basin stratigraphy. This area includes the Bulla Park copper-antimony-silver deposit, which holds an inferred resource of 20 million tonnes at 0.58% copper equivalent, with metallurgical testwork demonstrating strong recoveries for copper (94.6%), antimony (84.1%), and silver (82.6%).

The resource remains open for expansion, supported by a significant mineralisation-related gravity anomaly extending beyond the current footprint. Two prominent new prospects, Blind Freddie and Lilyvale, have been defined with multiple drill-ready targets. Blind Freddie features a 3-kilometre copper-gold anomaly associated with structural and gravity highs, while Lilyvale exhibits a strong gravity response and anomalous surface copper and lead geochemistry. Land access agreements and approvals are advancing, with aircore drilling planned for Blind Freddie and a ground gravity survey scheduled for Lilyvale to refine drill targets.

Baxter Fluorspar Acquisition Abandoned Amid Tenure Concerns

West Cobar undertook due diligence on the Baxter Fluorspar Project in Nevada, a historically high-grade fluorspar district with significant strategic value in US critical mineral supply chains. However, following a 30-day review period enabled by a $60,000 exclusivity fee, the company decided not to proceed with the acquisition due to tenure security issues. This decision comes despite earlier optimism about the project's exploration upside and its fit within West Cobar's portfolio.

Capital Raising and Financial Position

Concurrent with the Baxter acquisition announcement, West Cobar completed a placement issuing 61.8 million shares at $0.017 each, raising just over $1.05 million before costs. This capital injection bolsters the company's cash position to approximately $1.5 million as of 30 June 2026, with no debt on the balance sheet. Operating cash outflows for the quarter were $578,000, primarily related to exploration and corporate costs.

Looking ahead, West Cobar plans to execute multiple exploration and development activities, including scandium-focused aircore drilling at Salazar, gravity surveys and follow-up drilling at Cobar West targets, and progressing development studies. The company is also maintaining engagement with US funding and offtake partners to support project advancement.