Highlights

• Megado Minerals said in its quarterly report for the period ended 30 September 2026, released on 29 October.

• Megado has agreed to acquire an 80 per cent interest in Iberian Copper Pty Ltd, so the acquisition.

• At Alpartir in Spain, an option to earn 80 per cent of a 576 square kilometre project was.

• In Idaho, the North Fork rare earths project covers 526 claims, about 45 square kilometres, under an exploration.

Megado Minerals (ASX:MEG) — said in its quarterly report for the period ended 30 September 2026, released on 29 October 2026, that it had completed three drill holes totalling 939.5 metres at the Etayo permit in Spain, part of the Iberian Copper project, while cash fell to A$1.27m. The company said it is assessing equity raisings and other funding options, but it has not announced a specific raise.

Iberian Copper drilling

Megado has agreed to acquire an 80 per cent interest in Iberian Copper Pty Ltd, so the acquisition is an agreement rather than a completed transaction. The project covers 777 square kilometres across seven Investigation Permits and five Exploration Permits and targets red-bed sediment-hosted copper in Oligocene sandstones, similar to the Lisbon Valley style. Drilling began on 14 July 2026 to test extensions of the historic Mina Emilia copper mine.

The only assay result detailed was from hole ET-01, which returned 0.55 metres at 0.84 per cent copper and 11 g/t silver from 75.05 metres, including 0.25 metres at 1.39 per cent copper. The company said the program was scaled back after the geological model was reinterpreted. Assays for ET-01bis and ET-04 are pending, and interpretation of downhole and dipole-dipole induced polarisation surveys is underway. A second phase of drilling in the Etayo and Eslava permits has been submitted, subject to regulatory approval and a board decision. The report is internally inconsistent here: the highlights say Phase 2 drilling is planned for the current quarter, while the cash flow commentary describes drilling as paused.

Alpartir and other projects

At Alpartir in Spain, an option to earn 80 per cent of a 576 square kilometre project was approved by shareholders on 9 October 2026. Megado has completed a 451.3 square kilometre airborne magnetic survey and sampled stream sediments at 403 localities, with final assays expected this quarter and magnetic reprocessing due in the fourth quarter of calendar 2026. Drilling will follow only if the Investigation Permits are granted.

In Idaho, the North Fork rare earths project covers 526 claims, about 45 square kilometres, under an exploration agreement with an Iluka subsidiary. The two-year exclusive period began in October 2024, and the option terms are A$1m to acquire 100 per cent, plus A$2m tied to US$10m in project revenues. In Canada, Megado holds the 100 per cent owned Cyclone and K Lithium projects. For Cyclone, renewal fees have been paid after the 29 June 2026 anniversary, but expiry dates are still described as pending confirmation. The company also noted that high-grade results reported by Aquilon relate to a neighbouring property and are not necessarily indicative of Megado's ground.

What the drilling has and has not shown

The one disclosed intercept is narrow, at about half a metre, and the company has not reported a resource, a defined target size or an economic study for any of its projects. Two further holes await assay, so the picture at Etayo remains incomplete.

Cash and funding

Cash at quarter end was A$1.27m, down from A$2.026m. Net operating outflow was A$325,000, exploration spend was A$431,000, and administration and corporate costs were A$342,000. Related-party payments were A$213,000, covering director and officer fees, remuneration and short-term incentive awards. There was no new funding in the quarter; year-to-date equity proceeds were A$1.5m less A$53,000 in costs. The Appendix 5B estimates 1.68 quarters of funding, below the two-quarter level that triggers additional disclosure. The company said it expects spending to fall in the December 2026 quarter.

Risks and next milestones

The main risks are funding, with roughly 1.7 quarters of cash and no committed raise, regulatory approval for further drilling, the grant of Alpartir permits, unconfirmed Canadian claim expiry dates and completion of the Iberian Copper acquisition. Milestones are the pending Etayo assays, interpretation of the geophysical surveys, a decision on Phase 2 drilling, and the Alpartir assays and magnetic reprocessing results.