Why Union Star Metals (ASX:USM) is selling Australian and Brazilian assets to focus on Nevada gold drilling at Cobb Creek

Sonal Goyal

16 October 2026 11:31 PM AEDT

Why Union Star Metals (ASX:USM) is selling Australian and Brazilian assets to focus on Nevada gold drilling at Cobb Creek

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Key Highlights

PVW rebranded as Union Star Metals on 25 March 2026 and announced the establishment of a Nevada gold portfolio on 9 April.
On 6 July 2026 the company announced a binding option agreement to sell its Kalgoorlie Gold Project to Lionex Metals Group for total potential consideration of about A$890,000.
On 22 July 2026 it agreed to sell its Brazilian Subsidiary to London-listed Harvest Minerals, subject to regulatory, Shareholder and other approvals.

Union Star Metals (ASX:USM) has spent 2026 reshaping itself. Company announcements show it rebranded from PVW on 25 March 2026, assembled a United States gold portfolio from April and, in July, moved to sell or option almost everything else. The result is a strategic pivot: a company that previously held Australian and Brazilian Assets is now concentrating on Cobb Creek, a Nevada gold prospect that it says is heading towards maiden drilling, subject to approvals.

The rebrand and the US portfolio

The company announced on 25 March 2026 that PVW had rebranded as Union Star Metals Ltd, and it now trades under the code USM. On 9 April it announced that it had established a Nevada gold portfolio. A series of Cobb Creek updates followed through the next two months: technical and permitting workstreams advancing on 13 April, a multi-target gold system highlighted on 14 May and a large concealed gold target ahead of drilling on 2 June. The company also holds the Colorado Gulch gold project and the Silver Star silver project in Idaho.

These announcements describe targets and a concealed system rather than drill-confirmed mineralisation, and the company has not reported a resource estimate for the project.

The disposals

On 6 July 2026 Union Star announced a binding option agreement for the sale of its Kalgoorlie Gold Project in Western Australia to Lionex Metals Group. The total potential consideration is about A$890,000, made up of a A$30,000 non-refundable option fee, A$270,000 if the option is exercised and up to A$570,000 in milestone payments tied to the definition of a JORC Mineral Resource. An option is not a completed sale: Lionex must exercise it, and ASX Listing Rule approvals, possibly including shareholder approval, may be required.

On 22 July 2026 the company announced a binding agreement to sell its Brazilian subsidiary, Scanty Mineração Ltda, to London-listed Harvest Minerals. According to the announcement, consideration comprises A$200,000 in cash at completion, 40 million Harvest shares, A$100,000 when a qualifying Mineral Resource is declared and A$200,000 on a first development milestone, or after 60 months if that milestone has not been reached sooner. Through a novation deed, Harvest would assume about A$1.5 million of deferred Acquisition payments owed to the original vendors, together with related royalties. Completion depends on Brazilian regulatory, shareholder and other approvals and consents, and no timetable has been given. The release notes that the sale follows the earlier disposal of the Leonora Gold Project.

The deferred payments depend on events outside Union Star's control, and the value of the Harvest shares will fluctuate over time.

Funding position

The company lodged a quarterly activities report and Appendix 5B on 30 April 2026. Its current cash balance, quarterly spending and funding runway are not detailed in the announcements discussed above. Management describes the disposals as strengthening the Balance Sheet and funding work at Cobb Creek. Drilling in Nevada will require both permits and funds. No Capital raising has been announced, although any future issue of shares would dilute existing holders.

Key Insights

Union Star's transformation leaves it with a narrower focus and a set of conditional transactions that have yet to complete. The main risks are permitting timelines in Nevada, the conditions attached to both disposals, exploration risk at a project the company has not yet drilled, and the need to fund that drilling.

FAQs

Q:What was Union Star Metals previously called?

A:The company announced on 25 March 2026 that PVW had rebranded as Union Star Metals Ltd, and it now trades under the code USM.

Q:What are the terms of the Kalgoorlie Gold Project option?

A:The total potential consideration is about A$890,000, comprising a A$30,000 non-refundable option fee, A$270,000 if the option is exercised and up to A$570,000 in milestone payments tied to a JORC Mineral Resource.

Q:Has Union Star drilled Cobb Creek?

A:No. The company's announcements describe targets and a concealed gold system ahead of maiden drilling, which it says is subject to approvals, and no resource estimate has been reported.

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