Key Highlights

  • Cosmo completed a two-tranche Placement raising about A$1.25 million before costs to fund its Mona drilling programme.
  • The planned programme is up to eight reverse circulation holes for about 2,200 metres, contracted to Durock Drilling.
  • Cash was A$319,000 at 30 September, with an estimated 0.71 quarters of funding before the second tranche.
  • The two tranches issued about 357 million shares at roughly A$0.0035, a dilution equal to about a third of the register.

Cosmo Metals (ASX:CMO) is an exploration company with projects in the New England Orogen of New South Wales and near Kalgoorlie in Western Australia. Its September quarter report, released on 29 October 2026, says it has regulatory approval and an executed drilling contract for the first drilling ever undertaken at the Mona copper-gold-silver prospect within its Bingara Project.

To pay for that programme, the company completed a two-tranche placement raising about A$1.25 million before costs. The second Tranche was issued on 21 October 2026, after quarter end, which matters because the September quarter Appendix 5B on its own showed less than one quarter of funding.

The Mona drilling plan

Mona sits within what Cosmo describes as a 20 km volcanogenic massive sulphide (VMS) belt at Bingara, about 150 km north of Tamworth. The planned programme is up to eight reverse circulation holes for about 2,200 metres, contracted to Durock Drilling, following up historic mine dump samples that returned up to 4.93% copper, 11.65 g/t gold and 204 g/t silver.

Those are selective surface samples from early 1900s workings, not drill results, and the trend has never been drilled. Grab samples from mine dumps can overstate the grade of what lies underground. The company has not given a firm start date beyond saying it is close to commencing.

Other exploration

It was also granted the Carters Road copper licence (EL9946) in southern New South Wales.

At Kanowna, near Northern Star's Kanowna Belle mine, assays from earlier diamond drilling returned broad, low-grade gold intervals, including 14 metres at 0.48 g/t gold at Laguna Verde in a hole co-funded under the WA Government's Exploration Incentive Scheme. The company says these define fertile gold systems; they are exploration results, not a resource.

Funding and dilution

According to the Appendix 5B for the quarter ended 30 September 2026, Cosmo held A$319,000 in cash, down from A$466,000. Net operating outflows were A$122,000 and exploration spending, classed as investing, was A$326,000. The company estimated 0.71 quarters of funding at quarter end, and said it expects to continue operating based on the completed tranche 2 and future Capital raisings.

Tranche 1 raised about A$332,000 during the quarter. Tranche 2, approved by shareholders on 14 October 2026, raised about A$918,000 through 262.2 million shares, including A$25,000 from managing director Ian Prentice and A$200,000 from major Shareholder Great Boulder Resources. The two tranches together issued about 357 million shares at roughly A$0.0035, against about 1.05 billion shares now on issue. That is a substantial dilution, equal to roughly a third of the current register. Lead managers also received 20 million options.

A substantial holder notice lodged on 22 October 2026 shows Cumulus Wealth's voting power at 14.78%, and 1 million shares were released from voluntary Escrow on 2 November 2026.

Risks and upcoming events

Key risks are exploration failure at Mona, continuing reliance on Equity raisings, and the low grades seen so far at Kanowna. Antimony and copper prices have drawn attention to critical minerals, but Commodity prices do not by themselves make an early-stage target economic.

The Annual General Meeting is scheduled for 10am AWST on Tuesday 24 November 2026 in Perth, with resolutions on the remuneration report, re-election of Peter Bird, a 10% placement capacity and re-approval of the employee incentive plan.