REG - Critical Metals PLC - Commencement of Copper Production at Molulu

Critical MetalsAnnouncement

26/01/2023 07:01

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RNS Number : 8703N  Critical Metals PLC  26 January 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (596/2014/EU) as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, such information no longer constitutes inside information.

 

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

 

 

26 January 2023

Critical Metals plc

 

("Critical Metals" or the "Company")

 

Commencement of Copper Production at Molulu

Forecast Production of 120,000t per annum of Copper Oxide Ore

Highlights

 

·  Copper oxide production commenced at the Molulu Project, an ex-producing
copper/cobalt mine in the Democratic Republic of the Congo

·    Forecast to produce an initial 120,000 tonnes of copper oxide ore per
annum

·    Production optimisation actions underway with the view of increasing
copper ore production

·   Initial test samples have been taken from Central and South Cobalt
Anomaly and are ready to be sent to the laboratory for independent analysis

·    Board to visit Molulu with mining analysts

 

Critical Metals plc, a mining company established to acquire mining
opportunities in the critical and strategic metals sector, is pleased to
announce the commencement of copper production at the Molulu Project, an
ex-producing copper cobalt mine in the Democratic Republic of Congo ("DRC")
("Molulu Project"). Production follows the completion of preparation work on
site and the arrival of several vital pieces of mining equipment. This is a
major landmark as the Company moves towards securing further assets.

The mine will initially run on a single-shift basis and is estimated to
produce approximately 10,000 tonnes of copper oxide ore per month on a
steady-state production rate. The copper ore produced in January 2023 will be
stockpiled for sale into the market in February 2023.

All copper material extracted from the mine will be sent to local processing
plants, of which there are four in the Likasi and Lubumbashi areas expressing
interest in purchasing Molulu copper ore.

In addition, the Company's engineers, geologists, and advising consultants are
discussing various strategies to optimise and increase monthly copper ore
production. Further information on this will be released when appropriate.

As previously mentioned, the Central Cobalt Anomaly and South Cobalt Anomaly
have recently had test samples taken by the Company's lead geologist; as of
date of this announcement, 180 samples have been taken. These samples will be
sent to a local laboratory for independent analysis. Results will be released
to the market when available.

In order to increase the penetration of the Critical Metals story to the
global market and investors, two London based mining analysts will accompany
the Board of Critical Metals on a Molulu site visit in the middle of February.
The purpose of the visit is to provide greater understanding of the copper
oxide and sulphide production, cobalt potential, and cash flow characteristics
of Molulu to the global investing market.

With much of the infrastructure now in place, the Company has assembled a
strong team of mining professionals onsite including, a project manager, four
geologists, two mine engineers, as well as the recently appointed mine manager
and a compliment of local village support staff. The Company is now perfectly
positioned to take advantage of the strongly recovering copper price that is
well above US$9,000 per metric tonne.

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

 "This is a landmark moment for Critical Metals and all shareholders, I am
delighted to be able to announce the start of production at the Molulu
Project, which was achieved on budget with sales of copper oxide ore expected
as early as next month.

"With copper ore production now underway, the Company expects to be free-cash
flow positive by the end of H1 2023, showing the high cash flow generation
potential under the current market conditions. We expect further activity at
Molulu to increase throughout the next few months, particularly as the rain
season closes at the end of March, and we look forward to an expansion in
monthly copper ore production.

"In an exciting new chapter in the growth of the Company, two London based
mining analysts will be visiting Molulu in the middle of February. These
analysts are well known and will write research on Critical Metals that will
be read by family offices, wealth management firms, and buy-side institutions
in Britain, Europe, Africa, Australia, and North America. I am extremely
excited to show these analysts all the hard work that has been done at Molulu.

"2022 was a uniquely transformational year for Critical Metal and 2023 already
looks to continue this positive trend. I believe that the Molulu Project has
the potential to become an exceptional producer of cobalt and copper in the
DRC and I look forward to updating shareholders on our progress throughout
2023.

"Finally, I wish to personally thank our local DRC partners for their patience
and steady support as we embark on this incredibly exciting journey. Our local
DRC partners are integral to the success of our journey, and we are thankful
for their guidance, knowledge, and partnership."

The Molulu Project

The Molulu Project, located approximately 98 kilometres north of Lubumbashi in
the Katanga Copperbelt, is 30 kilometres northwest from the village of
Malambwe. Copper has been mined in the Katangan Copperbelt since at least the
late 19th Century. The mineralised zones are at the western end of the
Katangan Copperbelt, one of the great metallogenic provinces of the world, and
contains some of the world's richest copper, cobalt, and uranium deposits.

The Molulu Project was the first acquisition made by the Company since its
readmission on the Main Market of the London Stock Exchange on 12 September
2022. The Company owns 100 per cent of Madini Occidental Limited ("Madini
Occidental"), which holds an indirect 70 percent interest in the Molulu
Project.

 

**ENDS**

 

 

 

 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 a controlling 100% stake in Madini Occidental
Limited, which holds an indirect 70% interest in the Molulu copper/cobalt
project, an ex-producing medium-scale asset in the Katangan Copperbelt in the
Democratic Republic of Congo. In line with its investment strategy of focusing
primarily on known deposits, targeting projects with low entry costs and the
potential to generate short-term cash flow; the Company intends to produce
120,000t/per annum of Copper Oxide Ore.

The Company will continue to identify future assets that are in line with its
stated acquisition objective of low CAPEX and OPEX projects with near-term
production, concentrating on minerals that are perceived to have strategic
importance to future economic growth and generate significant value for
shareholders.

 

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