Key Highlights

  • Cosmo Metals announced an A$1.25 million two-tranche Placement at A$0.0035 a share on 2 September 2026, a 30 per cent discount to the 31 August close.
  • Shareholders approved the second Tranche of 262.2 million shares and the attaching Options at a general meeting on 14 October 2026.
  • The FY2026 Annual Report shows cash of A$466,276 at 30 June 2026 and a net loss of A$4.23 million including an A$2.93 million impairment.

Cosmo Metals (ASX:CMO), a West Perth explorer with gold, copper and antimony projects in New South Wales and Western Australia, priced its September 2026 placement well below recent trading levels to pay for the first drilling at its Mona copper prospect. For existing shareholders, the trade-off is funding for exploration in exchange for a sizeable increase in the share count. Shareholders approved the second tranche of the raising on 14 October 2026.

Projects and stage of development

Cosmo has no revenue. Its 2 September 2026 placement announcement puts the Bingara and Nundle projects in northern New South Wales at about 743 square kilometres, while its Kanowna gold project sits near Kalgoorlie, alongside the Kanowna Belle operations of Northern Star Resources (ASX:NST). None of the projects carries a JORC resource. The FY2026 annual report, released on 9 September 2026, records exploration Assets of about A$10.25 million after an A$2.93 million Impairment charge in the year.

The placement

The A$1.25 million two-tranche placement comprised 357,142,857 new shares at A$0.0035 each, with one attaching option for every two shares, exercisable at A$0.0053 over three years. The issue price was a 30 per cent discount to the 31 August close and a deeper discount to the 15-day and 30-day volume-weighted averages. Major Shareholder Great Boulder Resources (ASX:GBR) committed A$200,000 and managing director Ian Prentice A$25,000.

The company earmarked the funds for maiden drilling at Mona, soil sampling at Antimony Gully, assessment of acquisitions and working capital. Rock-chip sampling at Mona returned up to 4.93 per cent copper, 11.65 grams per tonne gold and 204 grams per tonne silver from sulphide-rich dump material; these are surface samples, not drill results.

The first tranche of 94.9 million shares settled on 9 September. The second tranche of 262.2 million shares and the options were approved at the 14 October general meeting, with about 98 to 99 per cent of votes cast in favour.

Other exploration updates

On 6 October the company reported drill targets at Star of Bingara, where surface samples returned gold of up to 13.6 grams per tonne. The annual report also notes that post-year-end assays at Kanowna showed broad, low-grade gold at Laguna Verde and Adder.

Cash, losses and dilution

Cash stood at A$466,276 at 30 June 2026, compared with A$730,526 a year earlier, and the net loss for the year was A$4.23 million including the impairment. An underwritten entitlement offer of roughly A$1.55 million was completed in early 2026. The placement adds about 357 million shares to the register before any attaching options are exercised, a substantial level of dilution. The directors' risk disclosures state that a failure to obtain financing could affect the company's ability to continue as a going concern.

Sector context and risks

Sulphide-hosted base-metal targets of this kind are often small and costly to drill, and outcomes are uncertain. For Cosmo, funding remains the nearer-term constraint.

What's Next

The company has targeted maiden drilling at Mona for early in the December quarter of 2026, but has not confirmed a start date.