Chilwa Minerals Ltd (CHWM)

Chilwa Minerals Limited is a mineral exploration company whose principal activities are mineral exploration at the Chilwa Critical Minerals Project, located around the northern, western and southern shores of Lake Chilwa in southern Malawi. The Project hosts a geologically coherent and district-scale mineral system capable of supporting multiple styles of critical mineralisation, including heavy mineral sands, carbonatite-hosted rare earth elements, and ionic adsorption clay rare earth element potential. The heavy mineral sands industry is primarily concentrated in Australia, though South Africa, India and China are also major producers, with other countries with significant HMS deposits including the U.S., Brazil and Mozambique. The market for HMS products is driven by global economic growth, industrial demand, and technological innovation, and has faced challenges including declining demand for certain products, increased competition from alternative materials, and general environmental concerns related to all mining and processing. Ilmenite and rutile are primarily used as feedstock for the production of titanium dioxide pigment, with a small percentage also used in the production of titanium metal and fluxes for welding rods and wire, and titanium is included on the U.S. Interior Department's list of critical minerals. Zircon's predominant end-use is in the production of ceramic tiles, accounting for more than 50% of global zircon consumption, and zirconium is included on the U.S. Interior Department's list of critical minerals. Rare earth elements are a group of 17 chemical elements integral to a myriad of modern applications, from consumer electronics to national defense systems, and China is the dominant player in the global rare earths market, holding the largest reserves and controlling a significant portion of the processing capacity. The mining industry currently accounts for approximately one percent of Gross Domestic Product in Malawi, and the Malawian government has a target to increase the mining sector's contribution to GDP from less than one percent in 2011 to up to ten percent by 2063.

The mineral exploration and mining industry is intensely competitive in all of its phases, and many of Chilwa's competitors are large, established companies with substantial capabilities and greater financial and technical resources. The Company competes with other mining and exploration companies in connection with the acquisition of mining claims, the amount and quality of mineral reserves and resources, capital, and the recruitment and retention of qualified managerial and technical employees. In addition to Chilwa, there are several other mineral sands projects in Malawi at various stages of development, such as Sovereign Metals, Mawei Mining, Crown Minerals Ltd, and Globe Metals & Mining Ltd. Chilwa believes its high-quality asset base and differentiated approach distinguish it from its peers. The co-location and integration of both HMS and REE within the project area is a key differentiating feature, and while other operators in Malawi have generally pursued single-commodity or dual-commodity strategies, the Company's Lake Chilwa project encompasses HMS, REE and niobium across multiple deposit types, including alluvial mineral sands, ionic adsorption clays, monazite-bearing sands, and carbonatite-hosted mineralization. The support of ultimate major shareholder Mota-Engil Group, a global engineering and construction group founded in 1946 with approximately 50 years of operational experience across Africa, positions the Company well, and historically drilling and services agreements with Mota-Engil Engenharia e Construção Africa, S.A. allowed Chilwa to benefit from Mota-Engil's significant infrastructure and presence at a rate significantly lower than if sourced from third-party suppliers. The HMS assemblage at the Mposa deposit includes ilmenite and zircon (approximately 76% and 9.5%, respectively, of the heavy mineral fraction of the Sand unit composite) and monazite (approximately 2% to 3% of the non-magnetic fraction of the Sand and Silty Sand unit composites), providing a diversified revenue stream from a single processing operation.

Chilwa generates no revenue from mining operations and has incurred net losses since inception, funding its operations primarily through the sale of equity securities and interest income. The Company was incorporated in Australia in February 2022 and listed on the Australian Securities Exchange in July 2023 under the symbol CHW, and its ADSs commenced trading on the Nasdaq Capital Market under the symbol CHWM on October 1, 2026. The Company holds, through its 100% owned subsidiaries Chilwa Minerals Africa Limited and Phalombe Minerals Limited, three exploration licenses that grant exclusive rights to carry out exploration for certain heavy mineral sands and rare earth elements over a total tenement area of 881.0136 km2. Exploration License Number EL0670/22R1, originally granted on September 27, 2022 and currently valid until July 17, 2028, covers an area of 418.2851 km2 around Lake Chilwa, including the districts of Phalombe, Zomba and Mulanje. Exploration License Number EL0671/22R1, originally granted on September 26, 2022 and currently valid until July 17, 2028, covers an area of 12.84 km2 on Chisi Island in the district of Zomba. Exploration license EL0835/25, held by Phalombe Minerals Limited, is valid from July 18, 2025 to July 17, 2030 and covers an area of 449.8885 km2, with the option to extend, to carry on exploration activities in Mulanje, Phalombe and Zomba Districts. The Project is in the exploration stage, and the Company plans to build a processing plant if and when the Project enters the production stage. The Project benefits from access to rail, port and supporting infrastructure with a pit-to-port solution for exporting products to global markets, with the Project connected to the Nacala rail link and final products transported approximately 700km from Liwonde to the Nacala Deep Water Port for export. The closest international airport is located in Blantyre, approximately 100km from the Project.

The Company's exploration activities target heavy mineral sands, carbonatite-hosted rare earth elements, and ionic adsorption clay rare earth element potential. In September 2025, Chilwa completed Phase 2 metallurgical test work on a 4.2 tonne bulk sample from the Mposa deposit, characterizing three composite samples of material sourced from the Mposa project area, with 2,909 drill samples used to generate the metallurgical composites representing the three preliminary lithological zones identified to date, referred to as the Sand, Silty Sand, and Clay units. The Sand unit composite had a heavy mineral grade of 8.8% with approximately 89.5% of the HM fraction considered as being valuable heavy minerals (76% ilmenite, 9.5% zircon, 1.4% rutile and 2.5% almandine garnet). The Silty Sand unit composite had an HM grade of 3.8% with around 88% of this considered to be valuable heavy minerals (75% ilmenite, 8.9% zircon, 2.3% rutile, 1.6% almandine garnet). The samples representing the Clay unit were characterized by a lower HM grade of around 1%, with the HM fraction containing a significant proportion (approximately 40%) of non-valuable minerals, such as goethite, pyroxene and feldspar. Magnetic separation of the Sand and Silty Sand unit heavy mineral fractions indicates that a low-impurity ilmenite, containing 50% TiO₂, and a non-magnetic concentrate containing 55% to 60% zircon could be produced using conventional magnetic separation equipment. The non-magnetic fraction generated from the Sand and Silty Sand units contained 0.64% and 0.85% Cerium Oxide (CeO₂), respectively, in the non-magnetic product, indicating that 2% to 3% of the rare earth containing mineral monazite is present in the sample. Drilling methods used at the Mpyupyu deposit included 1,398 sonic drill holes totaling a depth of 6,174m drilled, with an average depth of 4.42m, a minimum depth of 0.32m and maximum depth of 14.00m. In June 2026, the Company announced that through reconnaissance hand panning, it extended the Mpyupyu West HMS target from approximately 5 km2 to over 17 km2, and 60 holes for 551 meters of a planned 268 hole Phase 1 program have been completed on a nominal 400 m north x 200 m east grid over interpreted thorium anomalies.

In March 2026, Chilwa announced the discovery of niobium mineralisation following the receipt of further ICP-MS assay results from diamond drilling conducted in the south of the Project's Mpyupyu target, with the nature and consistency of Nb₂O₅ grades in MPYDD006 confirming the presence of a niobium-enriched intrusive phase over 120m (downhole thickness) in extent. Key intervals at Nb₂O₅ >0.2% from MPYDD006 include 0.31% Nb₂O₅ (1,661ppm TREO, 174ppm Ta, 55 ppm Ga) over 126.1m from 125m downhole; 0.38% Nb₂O₅ (1,654ppm TREO, 225 ppm Ta, 61ppm Ga) over 62m from 138m downhole, including 0.45% Nb₂O₅ over 10m (2,365ppm TREO, 317ppm Ta, 64ppm Ga) from 190m downhole; 0.57% Nb₂O₅ (2,270ppm TREO, 320.4 ppm Ta, 56.7ppm Ga) over 1.55m from 129m downhole; 0.51% Nb₂O₅ (2,438 ppm TREO, 361 ppm Ta, 65ppm Ga) over 1m from 195m downhole; and 0.41% Nb₂O₅ (1,405 ppm TREO, 218 ppm Ta, 62ppm Ga) over 12m from 155m downhole. In April 2026, diamond drilling at the Mpyupyu target intersected a previously unmapped peralkaline syenite intrusion hosting significant niobium mineralisation, and at that time the Company had two diamond drill rigs operating within 175m of each other, with Rig 1 having completed drill hole MPYDD009 at a depth of 385m in alkaline-syenite intrusive series rocks and Rig 2 having commenced drilling hole MPYDD016 and progressed to a depth of 65m before technical difficulties progressing through heavily fractured ground forced the hole to be closed. Approximately 1,050m of drilling had been completed across six drill holes at the target, and a total of nine drill holes remained in the initial program, intended to constrain the geometry, phase boundaries, and lateral continuity of the multi-phase intrusive system. QEMSCAN has quantified monazite throughout the Mpyupyu deposit, adding REE exploration by-product potential alongside the ilmenite-zircon-rutile assemblage. In fiscal 2024, Chilwa acquired the Project for A$7,475,835, and as of June 30, 2026, the Company had exploration and evaluation assets of A$26.0 million and plant and equipment of A$0.5 million recorded on its balance sheet.

For fiscal year 2026, Chilwa reported interest income of A$74,183 ¹, compared to A$125,991 ² in fiscal 2025, and other income of A$11,181 ³, compared to nil in fiscal 2025. The Company reported a net foreign exchange loss of A$89,234 ⁴ in fiscal 2026, compared to A$95,172 ⁵ in fiscal 2025. Administration expenses were A$381,981 ⁶ in fiscal 2026, compared to A$400,434 ⁷ in fiscal 2025. Compliance and regulatory costs increased to A$1,568,832 ⁸ in fiscal 2026 from A$533,782 ⁹ in fiscal 2025. Consulting expenses were A$306,741 ¹⁰ in fiscal 2026, compared to A$500,844 ¹¹ in fiscal 2025. Depreciation and amortisation was A$131,411 ¹² in fiscal 2026, compared to A$94,983 ¹³ in fiscal 2025. Employee benefits expense increased to A$1,297,676 ¹⁴ in fiscal 2026 from A$915,366 ¹⁵ in fiscal 2025. Other expenses were A$189,049 ¹⁶ in fiscal 2026, with no comparable amount in fiscal 2025, and exploration expenditure expensed was A$151,370 ¹⁷ in fiscal 2026, with no comparable amount in fiscal 2025. Share-based payments expense increased to A$2,850,673 ¹⁸ in fiscal 2026 from A$948,505 ¹⁹ in fiscal 2025. Loss before income tax was A$6,881,603 ²⁰ in fiscal 2026, compared to A$3,363,095 ²¹ in fiscal 2025. For fiscal years 2026, 2025 and 2024, the Company had a net loss of A$6.9 million ²², A$3.4 million ²³ and A$1.8 million ²⁴, respectively, and net cash used in operating activities of A$3.5 million ²⁵, A$2.0 million ²⁶ and A$1.8 million ²⁷, respectively.

Subject to available funding, access, permitting, contractor availability, seasonal conditions, laboratory turnaround and technical results, Chilwa's proposed exploration program for the twelve months ending June 30, 2027 will focus on seeking heavy mineral sands resource definition, mineralogical and metallurgical test work, exploration of selected rare earth element and niobium targets, and early-stage technical, environmental and permitting studies. The Company expects to fund the proposed exploration program from its existing cash, including the net proceeds of its initial public offering, and from additional funding that it will need to raise. The heavy mineral sands resource definition element involves planned infill and confirmatory sonic drilling, collar and survey validation, density checks, assay review and database validation at the Mposa, Mposa North, Bimbi, Mpyupyu, Nkotamo, Halala, Beacon and Namanja West deposits, with the purpose of increasing geological confidence in existing heavy mineral sands deposits and testing selected extensions of known mineralization, and expected technical outputs including an updated drilling and assay database, updated geological interpretation and, if supported by results, a mineral resource estimate.

The mineralogy and metallurgical test work element of the proposed program involves planned XRF, QEMSCAN and related mineralogical analysis, representative composite sample work, slimes and oversize characterization, recovery test work and product specification assessment, with the purpose of supporting mineral assemblage interpretation, recovery assumptions and process-design inputs, and expected technical outputs including updated mineralogical and metallurgical assumptions for future technical studies. The rare earth element and niobium exploration element involves planned targeted diamond drilling, geological logging, geochemical analysis, petrography, mineralogical analysis and three-dimensional geological modelling at the Mpyupyu carbonatite, the Mposa REE anomaly and other selected targets, with the purpose of evaluating selected rare earth elements and niobium targets and determining whether further exploration is warranted, and expected technical outputs including refined geological models, target ranking and, if supported by sufficient data, inputs for future resource estimation work. The technical, environmental, and permitting studies element involves planned mine-method screening, infrastructure review, logistics assessment, environmental baseline work, community and land-access review and permitting work streams, with the purpose of generating technical and environmental inputs for future studies and permitting processes. The currently proposed exploration program is evaluative in nature, and the Company may modify its scope, sequencing and timing as results are received.

Chilwa's growth strategy includes continuing to engage in sonic drilling, defining Mineral Resource Estimates, feasibility studies, diamond drilling, assay results, and scoping studies, among others, to systematically advance its HMS, REE, and niobium projects, with these efforts intended to progressively de-risk the project and better position the Company for development decisions. The Company also intends to leverage its expertise and extensive mining exploration experience to implement operational improvements and continue identifying and evaluating new opportunities to reduce operating costs and improve efficiency. As part of its exploration activities, Chilwa procures sonic and diamond drilling services through several drilling services agreements, operating more than one drill rig from more than one supplier during its current exploration programs, with such agreements being program or meterage based, not containing exclusivity provisions, terminable by either party on written notice, and entitling the Company to procure substitute services from third parties. In addition, the Company is beginning to bring some services in-house, having already acquired a preparation lab to process samples for assaying, being in the process of acquiring an assay lab, and being in the process of purchasing its own diamond drill rig.

The Company's strategy includes maintaining safe and sustainable operations for its employees, communities and shareholders, with a safety-first and community development approach to doing business remaining a core tenet of its operational focus and business strategy, and the Company believing that continuing to focus on its people, communities, and the environment will position it to attract the best local talent and ensure efficient, stable, and long-term operations. The Company also plans to continue to strengthen its relationship with the Government of Malawi, which considers agriculture, tourism, and mining as key focus sectors for the economic growth of Malawi, and building on mutual understanding with the Government of the importance of developing a vibrant mining sector to the Malawi economy, Chilwa plans to work with the Government to secure a mining license and a mining development agreement.

Chilwa's capital position is supported by its recent initial public offering. As of October 19, 2026, the Company had cash of approximately A$2.4 million ²⁸, excluding a restricted term deposit of A$30,000 ²⁹ and cash held by its Malawian subsidiaries, to which it transferred US$0.4 million ³⁰ on October 5, 2026. On October 5, 2026, the Company received US$3.1 million ³¹ (approximately A$4.5 million ³²) from its initial public offering, after deducting the underwriting discount and the underwriter's expenses but before other offering expenses payable by the Company, and on October 16, 2026, it closed the sale of 56,834 ³³ additional ADSs on the underwriter's further partial exercise of its over-allotment option, for gross proceeds of approximately US$0.3 million ³⁴. The Company requires significant additional capital to fund its business, and due to the nature of its current operations, being mineral exploration, it does not have ready access to credit facilities, with the primary source of funding having been equity raisings. The Company may also seek to raise funds through joint ventures, production sharing arrangements or other means. Any additional equity financing may result in dilution for some or all shareholders, and debt financing, if available, may involve restrictive covenants which limit operations and business strategy.

Chilwa faces structural headwinds and constraints on its growth plan. The Company's ability to continue as a going concern is dependent upon its ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due, and there is substantial doubt about its ability to continue as a going concern. If the Company is unable to raise additional capital if and when required, this could delay, suspend or reduce the scope of its business operations (including scaling back exploration programs) and could have a material adverse effect on its operating and financial performance. The Company's ability to access equity capital is currently limited by ASX Listing Rule 7.1, which provides that a company must not, subject to specified exceptions (including approval by shareholders), issue or agree to issue during any consecutive 12-month period any equity securities, or other securities with rights to conversion to equity, if the number of those securities in aggregate would exceed 15% ³⁵ (or 25% ³⁶ if approved in advance by shareholders in certain circumstances) of the number of ordinary securities on issue at the commencement of that 12-month period. This constraint may prevent the Company from raising the full amount of equity capital needed for operations without prior shareholder approval.

Regulatory and operational constraints in Malawi also shape the Company's outlook. Under Section 260 of the Mining Act, the Malawian government retains a statutory right to acquire a free, non-dilutable equity interest in any company that applies for a large-scale mining license, exercisable at no cost to the Malawian government and without requiring it to contribute capital, fund project costs, or assume operational obligations, with current market practice showing that the Malawian government typically takes a 10% ³⁷ equity interest, although in theory this could be higher or lower. Malawi applies a mandatory conversion ratio on the repatriation of export proceeds to Malawi, meaning a proportion of export proceeds must be converted into local currency, with the mandatory conversion ratio currently set at 25% ³⁸. In addition, the failure to repatriate foreign currency within 120 days ³⁹ from the date of export shall attract a fine of 150% ⁴⁰ of the value of the goods or services and the RBM may deregister the exporter. Under an Executive Order of the President of Malawi dated October 23, 2025 and with effect from October 21, 2025, the exportation of all raw minerals extracted in Malawi is prohibited, including for HMS and REE, although the prohibition does not apply to minerals that have been processed, refined or value-added in Malawi. Large-scale projects must conclude Community Development Agreements and spend ≥0.45% ⁴¹ of annual gross sales on community development. The initial term of an exploration license is five years ⁴² from the date of grant, a holder may apply for extensions of the term for periods of up to three years ⁴³, but no more than two ⁴⁴ such extension applications may be made, and when applying for the extension of the term of an exploration license, the applicant must reduce the size of its last approved area by at least half ⁴⁵, unless such reduction would result in a license area of less than 25km2 ⁴⁶, in which case the applicant may request and have approved an area of up to 25km2 ⁴⁷.

Management's message to shareholders emphasizes Chilwa's positioning as a mineral exploration company looking to deliver growth and value for shareholders through achieving success from exploration and evaluation programs, with principal activities focused on the Chilwa Critical Minerals Project around the northern, western and southern shores of Lake Chilwa in southern Malawi. Management highlights that the Project hosts a geologically coherent and district-scale mineral system capable of supporting multiple styles of critical mineralisation, including heavy mineral sands, carbonatite-hosted rare earth elements, and ionic adsorption clay rare earth element potential, and that the Company believes the Project can develop into a viable mineral sands project and that it is exploring a Tier 1 mineralized system in southern Malawi. Management notes that substantial advancements in exploration and resource development in the REE sector have been made, with over 47 ⁵¹ geophysical features or anomalies identified, and that the discovery of new exploration targets and the successful completion of several exploration and drilling programs have significantly strengthened the overall portfolio and positioned the Company well to continue to explore for REE, essential for various high-tech applications. The Company's strategic priorities for the period ahead center on three themes: advancing the proposed exploration program for the twelve months ending June 30, 2027, which will focus on seeking heavy mineral sands resource definition, mineralogical and metallurgical test work, exploration of selected rare earth element and niobium targets, and early-stage technical, environmental and permitting studies; driving additional cost efficiencies in operations by leveraging expertise and extensive mining exploration experience to implement operational improvements and continue identifying and evaluating new opportunities to reduce operating costs and improve efficiency, including bringing some services in-house through the acquisition of a preparation lab, the in-process acquisition of an assay lab, and the in-process purchase of the Company's own diamond drill rig; and continuing to strengthen the relationship with the Government of Malawi to secure a mining license and a mining development agreement. Management also emphasizes maintaining safe and sustainable operations for employees, communities and shareholders, with a safety-first and community development approach remaining a core tenet of operational focus and business strategy. The Company's proposed exploration program is evaluative in nature, and management may modify its scope, sequencing and timing as results are received, and there can be no assurance that the proposed exploration program will result in the definition of mineral resources, the conversion of mineral resources to mineral reserves, the completion of a feasibility study, or a decision to develop or mine the Chilwa Critical Minerals Project.

For fiscal year 2026, Chilwa reported interest income of A$74,183 , compared to A$125,991 in fiscal 2025, and other income of A$11,181 , compared to nil in fiscal 2025. The Company reported a net foreign exchange loss of A$89,234 in fiscal 2026, compared to A$95,172 in fiscal 2025. Total operating expenses for fiscal 2026 included administration expenses of A$381,981 , compared to A$400,434 in fiscal 2025; compliance and regulatory costs of A$1,568,832 , compared to A$533,782 in fiscal 2025; consulting expenses of A$306,741 , compared to A$500,844 in fiscal 2025; depreciation and amortisation of A$131,411 , compared to A$94,983 in fiscal 2025; employee benefits expense of A$1,297,676 , compared to A$915,366 in fiscal 2025; other expenses of A$189,049 , with no comparable amount in fiscal 2025; exploration expenditure expensed of A$151,370 , with no comparable amount in fiscal 2025; and share-based payments expense of A$2,850,673 , compared to A$948,505 in fiscal 2025. Loss before income tax was A$6,881,603 in fiscal 2026, compared to A$3,363,095 in fiscal 2025. For fiscal years 2026, 2025 and 2024, the Company had a net loss of A$6.9 million , A$3.4 million and A$1.8 million , respectively, and net cash used in operating activities of A$3.5 million , A$2.0 million and A$1.8 million , respectively. As of June 30, 2026, the Company had exploration and evaluation assets of A$26.0 million ⁵² and plant and equipment of A$0.5 million ⁵³ recorded on its balance sheet. As of June 30, 2026, the Company had foreign currency-denominated financial assets of A$57,506 ⁵⁴, denominated in Malawi Kwacha (A$28,208 ⁵⁵) and U.S. dollars and Euros (A$29,298 ⁵⁶), and foreign currency-denominated financial liabilities of A$1,421,168 ⁵⁷, approximately 75% ⁵⁸ of which were denominated in Malawi Kwacha, resulting in net foreign currency liabilities of A$1,363,662 ⁵⁹, compared to A$1,730,461 ⁶⁰ as of June 30, 2025, as restated. As of October 19, 2026, the Company had cash of approximately A$2.4 million , excluding a restricted term deposit of A$30,000 and cash held by its Malawian subsidiaries, to which it transferred US$0.4 million on October 5, 2026. On October 5, 2026, the Company received US$3.1 million (approximately A$4.5 million ) from its initial public offering, after deducting the underwriting discount and the underwriter's expenses but before other offering expenses payable by the Company, and on October 16, 2026, it closed the sale of 56,834 additional ADSs on the underwriter's further partial exercise of its over-allotment option, for gross proceeds of approximately US$0.3 million . The number of ordinary shares outstanding as of June 30, 2026, was 98,006,092 ⁶¹.

Chilwa faces substantial doubt about its ability to continue as a going concern, having incurred net losses since inception and negative cash flow from operating activities, with net losses of A$6.9 million , A$3.4 million and A$1.8 million for fiscal years 2026, 2025 and 2024, respectively, and net cash used in operating activities of A$3.5 million , A$2.0 million and A$1.8 million , respectively. The Company requires significant additional capital to fund its business, which may not be available on acceptable terms or at all, and due to the nature of its current operations, being mineral exploration, it does not have ready access to credit facilities, with the primary source of funding having been equity raisings. The Company's ability to access equity capital is limited by ASX Listing Rule 7.1, which caps issuances at 15% (or 25% if approved in advance by shareholders in certain circumstances) of ordinary securities on issue at the commencement of any consecutive 12-month period, which may prevent the Company from raising the full amount of equity capital needed for operations without prior shareholder approval. The Company has identified material weaknesses in its internal control over financial reporting relating to deficiencies in the design and implementation of controls, including inadequate IT general controls relating to system changes, access management, and segregation of duties across systems that support most financial reporting processes, controls not designed or implemented with sufficient precision to enable effective oversight of business processes and the related control activities, and failure to develop, implement, or consistently maintain formal accounting policies, procedures, and control documentation across the majority of its processes. The Company's operations in Malawi expose it to risks including the Malawian government's statutory right under Section 260 of the Mining Act to acquire a free, non-dilutable equity interest in any company that applies for a large-scale mining license, with current market practice showing that the Malawian government typically takes a 10% equity interest, and the mandatory conversion ratio on the repatriation of export proceeds currently set at 25% , with failure to repatriate foreign currency within 120 days from the date of export attracting a fine of 150% of the value of the goods or services. The Company's exploration licenses are subject to mandatory relinquishment requirements, as when applying for the extension of the term of an exploration license, the applicant must reduce the size of its last approved area by at least half , unless such reduction would result in a license area of less than 25km2 , in which case the applicant may request and have approved an area of up to 25km2 , and the exploration area of Exploration License Number EL0670/22R1 has previously been reduced by 50% ⁴⁸ (from 865.86km2 ⁴⁹ to 418.2851km2 ⁵⁰).