Key Highlights

  • Lionex let its option to buy the Kalgoorlie Gold Project expire, and Union Star keeps full ownership.
  • Union Star is seeking expressions of interest in Kalgoorlie, Tanami, Colorado Gulch and Silver Star.
  • Cash was A$220,000 at 30 September, an estimated 0.44 quarters of funding.
  • The Brazilian rare earths Subsidiary Scanty Mineração was sold to Harvest Minerals on 1 September 2026 for A$200,000 cash and 40 million Harvest shares.

Union Star Metals (ASX:USM) told the market on 9 November 2026 that Lionex Metals Group had let its option to buy the Kalgoorlie Gold Project in Western Australia expire. Lionex confirmed in writing that it would neither exercise the option nor take up a three-month extension. Union Star keeps full ownership of Kalgoorlie and is now seeking expressions of interest in four projects: Kalgoorlie and Tanami in Western Australia, and Colorado Gulch and Silver Star in Idaho.

The lapsed deal matters because Union Star has been selling non-core Assets to conserve cash and fund work at its priority project, Cobb Creek in Nevada. According to its September quarter activities report and Appendix 5B, released on 26 October 2026, the explorer held A$220,000 in cash at 30 September, which it estimated as 0.44 quarters of funding.

What Union Star does

Union Star is an early-stage explorer with a portfolio it has been narrowing towards United States gold and silver. Cobb Creek, in Elko County on Nevada's Independence Trend, hosts the historically explored McCall mineralisation. In the June quarter, the company identified a Central Concealed Target beneath volcanic cover, based on gravity, geochemistry and geology. The company itself stresses that these features give a rationale for drilling but do not establish a mineral resource. It said permitting delays have pushed back the planned start of drilling.

What the Kalgoorlie option was worth

The option agreement was signed on 6 July 2026. As described in the quarterly report, it involved a A$30,000 non-refundable option fee, A$270,000 payable on exercise and up to A$570,000 in resource-linked milestone payments. The company was careful to note at the time that the headline figure of about A$890,000 was not an unconditional receivable. With the option lapsed, the A$270,000 exercise payment will not be received from Lionex. That leaves the company to find another buyer or fund the tenements itself.

Brazil sale completed

Union Star completed the sale of its Brazilian rare earths subsidiary, Scanty Mineração, to AIM-listed Harvest Minerals on 1 September 2026. The consideration on completion was A$200,000 in cash and 40 million Harvest shares. Further payments of A$100,000 are tied to a qualifying rare earths resource and A$200,000 to a development milestone (or payable after 60 months). Harvest also assumed about A$1.5 million of deferred Acquisition payments and Royalty obligations.

Cash and funding

The Appendix 5B shows a net operating outflow of A$502,000 for the quarter. This included A$246,000 of exploration, which the company records as an operating cost, A$86,000 of staff costs and A$170,000 of administration. No Equity was raised during the quarter. In its item 8 commentary, Union Star said it expects outflows to fall as divestments reduce overheads. It added that it is pursuing partnerships, project-level funding, further asset sales and, if required, equity markets. This suggests a Capital raising or asset sale is likely to be needed in the near term, and an equity raising at current prices could be significantly dilutive.

Risks and what comes next

Junior explorers compete for limited risk capital, and selling small tenement packages can take time. Union Star's key risks are its very short funding runway, permitting delays at Cobb Creek, the lack of a buyer for its non-core assets and dilution. The confirmed near-term event is the Annual General Meeting at 10:00am (WST) on Tuesday 24 November 2026 in Perth. Any sale agreements, drilling permits or funding arrangements would be the next items to watch.