REG - Critical Metals PLC - Acquisition of 100% of Madini Occidental Ltd

Critical MetalsAnnouncement

19/12/2022 08:00

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RNS Number : 1365K  Critical Metals PLC  19 December 2022

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended).

 

Critical Metals plc / EPIC: CRTM / Market: Main Market

 

 

 19 December 2022

 

Critical Metals plc

 

("Critical Metals" or the "Company")

 

Acquisition of 100% of Madini Occidental Ltd

 

Critical Metals Increases its Stake in the Molulu Copper Cobalt Mine to 70%

 

 

HIGHLIGHTS

 

·    Critical Metals acquires remaining 21.5% of Madini Occidental Ltd
taking its holding to 100%

·    Critical Metals to become 70% owner of the Molulu Project,
ex-producing copper/cobalt mine in the DRC, following theacquisition of the
remaining 21.5% of Madini Occidental Ltd

·    Acquisition of the Molulu Project funded by recent new funds raised

·    Highly earning accretive with production at Molulu Project, on target
to re-start by the end of 2022

 

 

Critical Metals plc, a mining company established to acquire mining
opportunities in the critical and strategic metals sector and currently
developing an ex-producing copper cobalt mine in the Democratic Republic of
Congo ("DRC"), is pleased to announce the Company's further increased economic
interest in the Molulu ex-producing copper cobalt mine ("Molulu Project") with
the acquisition of the final 21.5% of Madini Occidental Ltd ("MO") from Madini
Minerals Ltd, taking the Company's holding in MO to 100%.

 

Further to the announcement of 15 December 2022 where the Company had offered
to purchase the balance of 21.5% in MO held by Madini Minerals Ltd, Critical
Metals, which indirectly beneficially owns 55% of the Molulu Project has
through its wholly owned subsidiary Critical Metals Mauritius Limited
("Critical Mauritius"), entered into an agreement to acquire the remaining
21.5% in MO which indirectly owns 70% of the Molulu Project ("Share
Acquisition").  This increases the beneficial ownership and voting control of
Critical Mauritius in Madini Occidental Ltd ("MO") from 78.5% to 100% and
indirectly increases its ownership of the Molulu Project from 55% to 70%. The
remaining 30% of the Molulu Project is held by our DRC based partners.

 

The consideration for the Share Acquisition is £450,000 paid in cash on
completion with a further payment of £200,000 on or before 1 October 2023, to
be paid in Critical Metals PLC shares at a price equal to the 10-day volume
weighted average or cash, at the Company's election.  The Share Acquisition
received the approval of the MO board on 19 December 2022. The Company will
fund cash element of the Share Acquisition via existing cash resources in the
Company, augmented by the proceeds of the fund raise announced on 15 December
2022.

 

 

Russell Fryer, CEO of Critical Metals, commented: "We are absolutely delighted
that Madini Minerals accepted our offer to acquire the final 21.5% in Madini
Occidental Ltd, resulting in a stream-lined and more efficient ownership
structure while more importantly, providing our shareholders with a much
larger interest in the high potential cash generating Molulu Project.

 

"This strategically important transaction is the first step towards building a
long life, fully integrated copper cobalt production company.  This new
ownership structure will greatly increase shareholder value while the demand
for both copper and cobalt continues to rise.

 

"I look forward to my next update in the near term where I anticipate being
able to report on maiden production."

 

 

 

 

 

**ENDS**

 

 

For further information on the Company please visit www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk/)  or contact:

 

 Russell Fryer                                     Critical Metals plc                             Tel: +44 (0)20 7236 1177

                                                                                                    

  Lucy Williams                                    Peterhouse Capital Limited, Corporate Broker    Tel: +44 (0)20 7469 0936

  Duncan Vasey

                                                                                                   Tel: +44 (0)20 7220 9797

 Catherine Leftley/Ana Ribeiro/Isabelle Morris     St Brides Partners Ltd,                         Tel: +44 (0)20 7236 1177

                                                   Financial PR

                                                    

 

 

About Critical Metals

 

Critical Metals PLC has acquired 100% of Madini Occidental Limited, which
holds an indirect 70% interest in the Molulu copper/cobalt project, an
ex-producing medium-scale asset in the Katanga Copperbelt in the Democratic
Republic of Congo. The acquisition of the initial interest in the project was
in line with its strategy of investing in known deposits, with low entry costs
and potential to generate short-term cash flow.  The Company intends to bring
the Molulu Project into near term production at the earliest opportunity
and also carry out a drilling campaign on the Molulu Project to obtain
additional data to move towards a JORC resource for the project.  The Company
will in parallel to this continue to consider other opportunities for
acquisitions as and when they arise.

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