REG - Critical Metals PLC - Approval and Publication of Prospectus

Critical MetalsAnnouncement

06/09/2022 15:30

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RNS Number : 4877Y  Critical Metals PLC  06 September 2022

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OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WOULD BE
UNLAWFUL.

This announcement is an advertisement for the purposes of the Prospectus Rules
of the Financial Conduct Authority ('FCA') and not a prospectus (or prospectus
equivalent) and not an offer of securities for sale nor a solicitation of an
offer to acquire or a recommendation to sell or buy securities in any
jurisdiction, including in or into the United States, Canada, Japan, South
Africa or Australia.

Neither this announcement, nor anything contained herein, shall form the basis
of, or be relied upon in connection with, any offer or commitment whatsoever
in any jurisdiction. Investors should not subscribe for or purchase any
ordinary shares (the 'Shares') referred to in this announcement except on the
basis of information contained in the prospectus (together with any
supplementary prospectus, if relevant, the 'Prospectus'),  including any
risk factors set out therein, published by Critical Metals Plc (the 'Company')
in connection the proposed re-admission of such Shares to the Official List of
the Financial Conduct Authority (the 'FCA') by way of a Standard Listing and
to trading on the main market for listed securities of the London Stock
Exchange plc (the 'LSE'). Copies of the Prospectus will shortly be available
from the Company's registered office at 20 Primrose Street, London EC2A 2EW
and on the Company's website at www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk)

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014.

 

 

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

 

6 September 2022

 

Critical Metals plc

 

("Critical Metals" or the "Company")

 

Approval and Publication of Prospectus

 

Critical Metals plc, a company established to acquire mining opportunities in
the critical and strategic metals sector, is pleased to confirm that its
Prospectus (the "Prospectus") in respect of the anticipated re-admission of
its Ordinary Shares to trading on the standard segment of the Official List of
the Financial Conduct Authority (the "FCA") and to trading on the main market
of the London Stock Exchange (together "Admission") has been approved by the
FCA and published by the Company.

 

The Prospectus contains details of the proposed acquisition of a 57 per cent.
interest in Madini Occidental Limited ("MO" or "Madini Occidental"), which
holds an indirect 70 percent interest in the Molulu copper/cobalt project (the
"Molulu Project") located within Small Scale Mining License ("SMEP") 14784
(the "Mining Licence") in the Democratic Republic of Congo ("DRC") (the
"Acquisition").

 

It is expected that Admission and completion of the Acquisition will become
effective and that dealings in the Company's Ordinary Shares will commence at
08:00 BST on 12 September 2022 under the symbol "CRTM". The Prospectus will
shortly be available on the Company's website: www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk)   and has been submitted to the National
Storage Mechanism and will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .

 

 

Overview

 

·    Agreed to acquire a controlling stake of 57 per cent. in Madini
Occidental, which holds a 70 per cent. interest in the Molulu Project for
consideration of US$750,000 plus a success fee of US$300,005 which has already
been paid

·    The Molulu Project is an ex-producing medium-scale copper/cobalt
asset in the Katangan Copperbelt, DRC, adjacent to producing mines and
previously mined by artisanal miners from four pits

·    Critical Metals intends to commence production at the Molulu Project
before the end of 2022 to provide near-term free cashflow. This includes a
30-day schedule to repair the mine roads and remobilise the camp following
completion

·    Proximity to copper smelters provides selling channels for copper
& cobalt production

·    Conditionally raised gross proceeds of £1,800,000 through a Placing
of Ordinary Shares ("Placing Shares") at 20 pence per share (the "Placing"),
with one 40 pence warrant attached to each Placing Share, exercisable for 12
months from Admission

·    The net Placing proceeds together with the Company's existing cash
resources will be used for drilling, mine site upgrades and general working
capital purposes

·    The Directors believe the Molulu Project has the potential to become
an efficient copper and cobalt producing operation and intend to complete
various exploration work and technical studies required to assess its
technical and economic viability in conjunction with bringing the Molulu
Project into production at the earliest opportunity

 

Copper/Cobalt Market

 

·    Copper is a key commodity required for the global transition to Net
Zero, used in wind turbines, electric vehicles, telecommunications and
construction sectors

·    The copper price has increased from US$2.14/lb to a current price of
around $3.70/lb since 2016 - driven by global economic growth, increasing
infrastructure investment and global supply-side deficit and has been forecast
by Goldman Sachs to reach US$15,000/ton, or $6.80/lb by 2025

·    The DRC is world's fourth largest producer copper producing 1.6
million metric tonnes in 2020 and supplies 60% of world's cobalt

·    Cobalt is used across commercial, industrial, and military
applications but has risen in importance due to its role in the production of
rechargeable batteries to power electric vehicles and energy storage from
solar, wind and renewable energy sources

·    Cobalt is also a key component of building nuclear power plants, a
resurging industry in the global renewable power generation sector

·    Cobalt prices are currently around $23/lb, averaging $25/lb over last
five years; demand is forecast to increase more than twentyfold by 2040,
according to the International Energy Agency

 

Company Strategy and Rationale for Re-admission

·    The Directors believe the Acquisition has the potential to generate
significant value for shareholders and is in line with its stated acquisition
strategy

·    The Acquisition fits in with the Company's strategy of focusing
primarily on known deposits, targeting projects with low entry costs and
potential to generate short-term cash flow

·    The Molulu Project has been under-developed due to a lack of
investment

·    The Project's proximity to copper smelters in Lubumbashi and Likasi
will provide processing and/or selling channels for copper and cobalt
production and therefore generate near term cashflow from any production from
the Project

 

Russell S. Fryer, Chief Executive Officer of Critical Metals, commented:

"I am delighted to be updating shareholders on our acquisition of an interest
in the Molulu Project. This represents a tremendous opportunity to take
advantage of the growing demand for critical minerals and delivers upon our
stated strategies.

"The Democratic Republic of Congo is a country with which the Board is
familiar and the 4(th) largest copper producers in the world. This puts us in
an advantageous position given the demands for copper, as a 'critical metal',
are ever increasing. Despite the price for copper softening in recent months
due to recent global events, what remains clear is how much the world needs
copper, as the highly conductive metal is a key component of industrial
infrastructure and electric vehicles. In addition, cobalt is highly
sought-after by both the aerospace industry and the rechargeable power unit
sector.

 

"As an ex-producing asset in the Katangan Copperbelt, we anticipate the Molulu
Project being brought into production again before the end of the year and
generate cash flow quickly to fund operations going forward. The proximity to
copper smelters will also provide processing and selling channels, negating
the requirement for extensive capex to process materials.

 

"I am truly excited about the future of Critical Metals, and whilst we will,
in the near term, focus on bringing the Molulu Project into production and
proving its resource potential, in the longer term the Directors will also
consider other opportunities for acquisitions in the critical metals space.
I look forward to providing shareholders with regular updates as we progress
to 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

 Rory Murphy / James Bellman        Strand Hanson Limited                         Tel: +44 (0)20 7409 3494

                                    Financial Adviser

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

 Heena Karani                                                                     Tel: +44 (0)20 7469 0933

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

                                    Financial PR

 

 

 

 

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