Kuniko Raises A$1.30m to Accelerate Commonwealth-Silica Hill Gold-Silver Expansion

Capital Raise Supports Next Phase of High-Grade Exploration

Kuniko Limited (ASX:KNI) has completed a strongly supported A$1.30 million placement at $0.02 per share, aimed squarely at advancing its Commonwealth-Silica Hill Gold-Silver Project in New South Wales’ Lachlan Fold Belt. The raise, which includes $182,500 from board and management, signals robust investor confidence as the company embarks on an active Phase 2 drilling campaign targeting resource expansion and new discoveries.

The placement proceeds will fund an initial 1,350-metre diamond drilling program focusing on extensions at Commonwealth Main Shaft, Commonwealth South, and the recently discovered Silica Hill Zone. This drilling phase follows a Phase 1 campaign that achieved a 100% success rate, with every hole intersecting mineralisation, including spectacular bonanza grades such as 0.5 metres at 347 g/t gold equivalent (AuEq) at Silica Hill, which contained 20,603 g/t silver and 27 g/t gold.

Phase 2 Targets and District-Scale Potential

Phase 2 drilling is designed to test the open-ended Silica Hill Zone, located roughly 100 metres beyond the existing mineral resource envelope, alongside growth opportunities at Commonwealth Main Shaft and South. Assay results are due in September 2026, with an updated Mineral Resource Estimate (MRE) planned for December, potentially reshaping the project’s resource footprint.

Beyond these immediate targets, Kuniko is pursuing exploration across a broader ~5km² mineralised corridor that includes largely untested prospects such as Walls and Stringers, historic shafts less than one kilometre from the core project. The company’s integrated targeting review is refining drill priorities across this district-scale system, which shares geological affinities with globally significant volcanogenic massive sulphide (VMS) and epithermal deposits.

Strategic Placement Terms and Shareholder Alignment

The placement will be completed in two tranches, with the first tranche raising approximately A$1.02 million through the issue of over 51 million shares under existing placement capacity. The second tranche, raising about A$277,000, requires shareholder approval and includes participation from directors and management. Investors in the placement will receive one free listed option for every two shares, exercisable at $0.07 and expiring in May 2029.

GBA Capital led the placement, supported by Spark+ as Asian Broker, and will receive broker options subject to shareholder approval. The placement price represents a 20% discount to the 10-day volume-weighted average price, balancing capital raising efficiency with shareholder value preservation.

Project Context and Forward Momentum

The Commonwealth-Silica Hill Project sits in a Tier-1 mining jurisdiction, approximately 100 kilometres north of Orange, NSW, within the prolific Lachlan Fold Belt that hosts major operations like Newmont’s Cadia-Ridgeway. The project comprises polymetallic VMS-style deposits at Commonwealth Main and South, alongside the epithermal silver-rich Silica Hill deposit.

Historical JORC Inferred Mineral Resource Estimates by Impact Minerals highlight significant gold and silver mineralisation, but Kuniko is focused on validating and expanding these resources through its drilling and technical programs. The company’s approach is informed by analogies to deposits such as Canada’s Eskay Creek, which combine precious metals with volcanogenic sulphide mineralisation.

With Phase 2 drilling underway and multiple high-impact catalysts on the horizon, including assay results and an updated resource estimate, Kuniko is positioning itself to unlock further value from a project that already boasts exceptional grades and substantial exploration upside.