Codrus posts FY26 $1.41M loss with Bull Run drilling progress and EdgeMet acquisition deal

Financials and Capital Position

Codrus Minerals Limited (ASX:CDR) reported a net loss of $1.41 million for the year ended 30 June 2026, an improvement on the previous year’s $1.81 million loss. The company’s cash reserves shrank sharply to $198,094 from $1.8 million a year earlier, reflecting ongoing exploration expenditure and operating costs. Despite the tighter cash position, Codrus secured commitments for a $2.5 million placement, with $1.29 million raised in the first tranche and shareholder approval pending for the remainder.

The company’s net assets dropped to just $41,225, highlighting a material uncertainty over going concern, though directors remain confident in the placement’s completion and the company’s ability to fund its exploration plans.

Bull Run Gold Project Drilling Confirms Mineralisation

Codrus continued to advance its Bull Run Gold Project in Oregon, USA, where it completed three diamond core drill holes totalling 1,050 metres targeting the Lady May and Whited vein systems. Results confirmed the geological model, with notable intercepts including 10.3 metres at 0.55 g/t gold and narrower higher-grade zones such as 1 metre at 2.42 g/t gold.

Beyond gold, the company identified high-grade molybdenum mineralisation up to 4.2% Mo in rock samples near the historic Record Mine, indicative of a porphyry-style copper-gold-molybdenum system. This polymetallic potential broadens the project’s appeal and exploration targets, with partial overlap between molybdenum soil anomalies and geophysical chargeability zones suggesting mineralisation extends beyond known gold veins.

The Bull Run project remains Codrus’s primary exploration focus, with further drilling and fieldwork planned to test untested geochemical and geophysical targets.

Portfolio Rationalisation and Focus on Core Assets

During FY26, Codrus rationalised its portfolio by disposing of the Middle Creek Project in Western Australia, receiving 15 million shares in Moho Resources Limited as consideration, and selling exploration data related to the Red Gate Project for $100,000. These moves freed up resources to concentrate on Bull Run and evaluate new acquisitions.

Meanwhile, the company maintained its Canadian uranium projects, Jasper Wedge and Nanuk, with no field activity during the year but ongoing desktop studies integrating historical data to refine drill targets.

In Western Australia, the Karloning Rare Earths Project underwent a detailed data review, highlighting tantalum and niobium mineralisation potential within a large pegmatite system. The company is assessing the geological continuity to support future drilling programs.

Acquisition of EdgeMet and Capital Raising

Post year-end, Codrus entered a binding agreement to acquire EdgeMet Pty Ltd, which holds 100% of the Copperhole Creek copper project in Queensland and rights to earn up to 99.8% of the Tiquihua molybdenum project in Peru, along with intellectual property related to joule heating technology. The acquisition consideration includes $100,000 cash, 230 million Codrus shares, up to 60 million performance rights, and deferred milestone payments up to $1 million, subject to shareholder approval.

The Copperhole Creek Project covers approximately 62 km² and hosts multiple prospects with historical exploration results, including a notable 12m intercept at 3.27% copper, yet to be followed up with modern techniques. Tiquihua offers exploration upside for molybdenum and critical minerals in a prolific Peruvian mining region.

To fund the acquisition and ongoing exploration, Codrus launched a two-tranche placement to raise up to $2.5 million at $0.025 per share. The first tranche closed with $1.29 million raised, while the second tranche awaits shareholder approval at a general meeting scheduled for 24 September 2026.

Corporate and Governance Updates

Codrus appointed Maddison Cramer as Company Secretary in January 2026, replacing Jamie Byrde who remains a Non-Executive Director. The company also relocated its registered office to West Perth.

Directors received 4 million unlisted options exercisable at $0.05 expiring in 2028 as part of remuneration, aligning management incentives with shareholder interests. No dividends were declared, consistent with the company’s focus on exploration and growth.

Risks and Outlook

The company outlined material risks including the conditional nature of the EdgeMet acquisition, capital raising uncertainties, exploration and permitting risks across multiple jurisdictions, and exposure to commodity price fluctuations. Environmental and social responsibilities remain a focus, particularly in managing relationships with local communities and regulatory compliance.

Codrus’s strategy centres on advancing Bull Run’s gold and molybdenum potential, progressing the EdgeMet acquisition, and pursuing further project acquisitions to diversify its portfolio. The success of these initiatives and capital management will be critical to the company’s trajectory in the coming year.