Share Consolidation Vote Looms as Conico Tackles Greenland Dispute and Exploration

Capital Raising Update

Conico Ltd has successfully raised a total of $1.395 million through the placement of unsecured converting loans, building on an earlier $900,000 raise announced in June 2025. These loans are set to convert into fully paid ordinary shares pending shareholder approval at an upcoming general meeting. The fresh capital injection is earmarked to support a drilling campaign at the Mt Thirsty Joint Venture project, settle ongoing legal disputes related to its Greenland assets, and provide sufficient working capital for the next 12 months.

Entitlement Offer and Share Consolidation

Looking ahead, Conico plans a fully underwritten non-renounceable entitlement offer on a revised 3-for-5 basis, aiming to raise approximately $1.23 million before expenses. This follows a shareholder meeting scheduled for 13 October 2025, where approval will also be sought for a share consolidation on a 1-for-8 basis. The consolidation is designed to streamline the capital structure ahead of the entitlement offer and related securities issuances, including shares to repay converting loans, broker fees, and related party debts.

Exploration Focus, Mt Thirsty Joint Venture

The Mt Thirsty project, located near Norseman in Western Australia and jointly owned with Horizon Minerals, remains the company’s exploration centerpiece. Previous drilling has revealed promising elevated scandium intersections exceeding 40 grams per tonne in the oxide zone, a critical finding given scandium’s role in enhancing battery and clean energy technologies. Conico plans to commence a 20-30 hole aircore and reverse circulation drilling program in October 2025, aiming to delineate the extent of this high-value scandium mineralisation and potentially expand the existing JORC resource.

Scandium’s current market price, around US$325,000 per tonne, underscores its strategic importance, particularly in the context of decarbonisation efforts. The Mt Thirsty JV partners are also exploring development pathways, resource expansion opportunities, and potential funding and offtake partnerships to advance the project’s commercial prospects.

Financial and Corporate Governance

The funds raised will cover capital raising costs, project expenses at Mt Thirsty and Greenland, corporate overheads, and working capital. Notably, the company has already made the first payment toward settling the Cartwright legal dispute related to its Greenland projects. The lead manager and underwriter for the entitlement offer has shifted to Templar Corporate Pty Ltd, maintaining consistent terms from the earlier agreement.

Shareholders will soon receive detailed notices outlining the resolutions to be voted on, including the share consolidation and the conversion of loans into equity. The pro forma capital structure post-consolidation and entitlement offer anticipates a significant increase in shares on issue, reflecting the company’s capital raising and debt settlement strategy.