Highlights

• OD6 Metals secures A$2.65M capital raise to fund exploration of Australia's largest clay rare earth deposit at Splinter Rock.
• Company strategically develops a multi-commodity portfolio, including rare earth and copper projects, to support the global energy transition.
• Metallurgical testwork shows promising recoveries at Inside Centre Prospect, with a 682Mt resource containing high-value magnet elements.

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OD6 Metals Limited (opens in a new tab) (ASX:OD6) has confirmed details of its recent capital raise and associated option package. The company has raised approximately A$2.65 million through the issue of new shares, based on the number of shares placed multiplied by the issue price.

In connection with this raise, OD6 has lodged an Appendix 3B outlining a proposed issue of 24,230,769 unlisted options, each exercisable at $0.10 and expiring 2.5 years from issue. The options remain subject to shareholder approval at a meeting scheduled for 31 October 2025.

Key Details

• Capital Raised: ~A$2.65 million from new share issuance.

• Options:

  • 19.2M free-attaching options granted to participants in the placement.

  • 5M options issued to lead manager GBA Capital Pty Ltd in addition to a 6% cash fee.

• Exercise Terms: Each option converts into one fully paid OD6 ordinary share at $0.10.

• Funds Use: Proceeds earmarked for working capital, exploration at Gulf Creek, and advancing studies at the company’s Splinter Rock clay rare earth project in Western Australia.

Strategic Context

OD6 is positioning Splinter Rock as a potentially large-scale, clay-hosted rare earth deposit — a style of mineralisation that could provide Australia with alternatives to China’s ionic clay supply. The raise provides short-term financial flexibility, while the option structure offers leveraged upside for participants if the share price strengthens.

Key Investor Questions

1. Dilution vs. Funding: Will the 24.2M options (if exercised) lead to meaningful value creation relative to dilution?
2. Capital Sufficiency: Is A$2.65M enough to achieve clear milestones at Splinter Rock, or will further raises be required in 2026?
3. Project Differentiation: How does OD6 plan to distinguish Splinter Rock from other Australian clay REE plays now competing for capital and offtake attention?
4. Execution: How effectively will funds be deployed between exploration, metallurgical testwork, and working capital?

Outlook

This raise demonstrates continued investor appetite for critical minerals despite market headwinds. For OD6, the challenge is to convert A$2.65M of fresh capital into technical de-risking and strategic positioning at Splinter Rock, where the company’s long-term value will ultimately be defined.

Profile

OD6 Metals Limited is an Australian exploration company focused on critical minerals central to the global energy transition. Its flagship Splinter Rock Rare Earths Project in Western Australia has been confirmed as the country’s largest and highest-grade clay-hosted rare earth deposit, with a May 2024 resource of 682Mt @ 1,338ppm TREO, including ~23% high-value magnet elements (Nd, Pr, Dy, Tb). Metallurgical testwork has shown promising recoveries, particularly at the Inside Centre Prospect, which combines thickness, grade, and favorable mining conditions. The company has also established heritage agreements with the Ngadju Native Title Aboriginal Corporation to ensure exploration respects cultural values.

Expanding its portfolio, OD6 has also acquired the Gulf Creek Copper Project in New South Wales, covering historic high-grade copper and zinc mines and targeting VMS-style mineralisation. With copper demand rising as electrification accelerates, OD6 plans to commence fully permitted drilling at Gulf Creek in early 2025. By combining ownership of Australia’s largest clay rare earth deposit with a prospective copper play, OD6 Metals positions itself as a junior explorer with multi-commodity leverage to the clean energy supply chain.

Source: ASX Announcement (opens in a new tab), OD6 Metals Ltd, Appendix 3B – Proposed Issue of Securities, 19 August 2025.

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