• DAF has firm commitments for a $900,000 Placement of 100,000,000 shares at $0.009 each; the second Tranche needs Shareholder approval at the AGM on 23 October 2026.
  • Cash at 30 September 2026 was $263,000, and the company calculates about 2.07 quarters of funding.
  • A binding agreement to acquire the Cuddingwarra Gold Project is conditional on shareholder approval, licence grants and a Capital raising.

Discovery Alaska Limited (ASX:DAF) has released its quarterly activities and cashflow report for the three months to 30 September 2026. The key developments are a $900,000 placement for which it has firm commitments, and a binding agreement to acquire the Cuddingwarra Gold Project near Cue in Western Australia. Parts of both depend on shareholder approval at the Annual General Meeting on 23 October 2026.

Placement and funding

The company says it has firm commitments from sophisticated and professional investors to raise $900,000 before costs through 100,000,000 fully paid ordinary shares at $0.009 each. The first tranche of 6,585,000 shares, about $59,000, has been issued under existing placement capacity. The second tranche of about 93,415,000 shares, implying about $840,700, is subject to shareholder approval at the AGM.

Advisers will receive a fee of one per cent of gross proceeds, and they or their nominees are to be issued 27,000,000 unlisted Options with a $0.02 exercise price and a three-year term, also subject to shareholder approval. The company says funds will go to exploration at its existing projects, the Cuddingwarra acquisition, placement costs and working capital.

Cash at 30 September 2026 was $263,000, down from $316,000 at the start of the quarter. Net operating cash outflow was $127,000, tenement payments were $35,000, and financing inflows were $109,000, comprising $59,000 from Equity issues and $50,000 of share application funds. On those figures, the company calculates about 2.07 quarters of funding, based on cash and the quarter's operating outflow. Of the quarter's spending, $26,000 was exploration and evaluation, and director fees of $28,000 were paid for six months.

Cuddingwarra acquisition

DAF has executed a binding share purchase agreement for Cuddingwarra, which comprises eight prospecting licence applications, P20/2587 to P20/2594, covering 13.86 square kilometres. The conditions are shareholder approval, grant of all the licences and completion of a capital raising. The company proposes to issue 80,000,000 shares to the vendors, subject to approval at the AGM. Because the licences are still applications, the Acquisition has not been completed.

The company describes the area as neighbouring the historical Cuddingwarra gold mine and projects held by Westgold Resources and Caprice Resources, within trucking distance of the Tuckabianna mill and within 7 kilometres of a trend with 16 historical open pits. It says the greenstone sequence is concealed beneath calcrete and has seen limited exploration. This geological and location description is the company's own and no drilling results are reported. After grant, it plans soil and rock chip geochemistry, first-pass aircore drilling and follow-up reverse circulation drilling.

Existing projects

At the Boulder Creek Gold-Silver Project in Idaho, the company holds 20 federal land claims and an option over an adjacent 640-acre state lease, which it has not yet exercised. It says site preparation, access works, permitting and water sourcing are complete and the project is ready for drilling, but it is waiting for a drilling contractor, and the schedule was delayed by a bushfire in July and August. At the Chulitna Project in Alaska, covering 15.5 square kilometres, the company says it is reviewing its strategy. It also says it is reviewing further project opportunities and has completed Due Diligence on some.

Risks and next milestones

The report states no financing facilities are drawn or available, and the second placement tranche, the adviser options and the vendor shares all depend on the AGM vote. If approvals or the licence grants do not occur, the acquisition does not proceed on the stated terms.

The confirmed milestones are the AGM on 23 October 2026, grant of the Cuddingwarra licences, completion of the capital raising, contracting a drilling provider for Boulder Creek, and exercising the Boulder Creek option.