Key Highlights

  • Octava holds a conditional option to acquire up to 100% of Aybull S.A., which holds the West Sierra Grande fluorspar project in Argentina.
  • The option fee is US$100,000 in cash plus US$200,000 in shares, with a path to a 70% interest within 12 months.
  • The Placement of about 99 million shares at $0.018 needs AGM approval for Tranche 2 and an SPP of up to $500,000.
  • Cash was $322,000 at 30 September before the placement proceeds, with an estimated 1.47 quarters of funding.

Octava Minerals (ASX:OCT) has added a new direction to its critical minerals strategy: a conditional option to acquire up to 100% of Aybull S.A., which holds the West Sierra Grande fluorspar project in Argentina. It announced the deal on 28 September 2026 alongside a $1.8 million placement, and on 2 November 2026 outlined a staged first exploration programme at the project.

Much of the funding and the Acquisition consideration still depends on shareholders. The Annual General Meeting on 27 November 2026 will vote on the second tranche of the placement, a share purchase plan and shares for the Aybull vendors.

What Octava does

Octava is a Perth-based explorer. Besides West Sierra Grande, it holds the Byro critical minerals project in Western Australia's Gascoyne region and the East Kimberley nickel and platinum group metals project, which is subject to a farm-in with Future Metals. In July 2026 it reported an Exploration Target at Byro of 4.93 to 7.39 billion tonnes of black shale carrying rare earths, lithium and vanadium. An Exploration Target is conceptual: the company itself states there has been insufficient exploration to estimate a Mineral Resource.

The West Sierra Grande option

The project covers about 400 square kilometres in Río Negro Province and includes four historical fluorspar mines, with Mining in the district ceasing decades ago and little modern exploration since, according to the September quarter report released on 28 October 2026. Fluorspar is used in steel, aluminium, battery and semiconductor Supply chains and appears on several countries' critical minerals lists.

The option is conditional on Due Diligence within 60 Business days, good standing of the tenements and approvals. The option fee is US$100,000 in cash plus US$200,000 in shares at a 30-day VWAP. Exercising the option within 12 months would secure a 70% interest for a further US$100,000 in cash and US$250,000 in cash or shares, with further stages to reach 100%. The planned programme starts with mapping, rock-chip and soil sampling and satellite data interpretation, while drill permit applications are prepared. Historical production does not establish a current resource.

Placement, SPP and dilution

The placement is for about 99 million shares at $0.018, with one free option exercisable at $0.035 for every two shares. Tranche 1 of about 29.9 million shares was issued on 6 October 2026. Tranche 2 of 70 million shares, the placement options, about 20 million broker Options and the share purchase plan of up to $500,000 on the same terms all need approval at the AGM. The meeting will also consider performance rights for each director and SPP participation by directors.

The Appendix 5B shows cash of $322,000 at 30 September 2026, before the placement proceeds. Net operating outflows were $174,000 and exploration spending was $45,000, offset by a $136,000 R&D incentive receipt. The company estimated about 1.47 quarters of funding at quarter end.

Risks and what to watch

If shareholders reject tranche 2 or the SPP, Octava would have materially less funding for due diligence and fieldwork. Approval would bring significant dilution from new shares, options and performance rights. Argentina adds sovereign, permitting and currency risk, and due diligence may not lead Octava to exercise the option. Byro remains at an early, conceptual stage.

Key dates are the AGM on 27 November 2026, completion of Aybull due diligence and first West Sierra Grande field results.