REG - Critical Metals PLC - Enters into Offtake Agreement

Critical MetalsAnnouncement

09/10/2023 07:15

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RNS Number : 0478P  Critical Metals PLC  09 October 2023

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

 

9 October 2023

Critical Metals plc

("Critical Metals" or the "Company")

Enters into Offtake Agreement with OM Metal & Resources S.A.R.L.

Critical Metals plc ( or the "Seller"), a mining investment company
established to acquire mining opportunities in the critical and strategic
metals sector, is pleased to announce that it has entered into an offtake
agreement (the "Agreement") with OM Metal & Resources S.A.R.L ("OM Metal"
or the "Buyer") for the sale of a minimum of 20,000 tonnes of copper oxide
ore  from the Company's flagship Project - the Molulu copper/cobalt project
("Molulu") in the Democratic Republic of Congo ("DRC").

The Agreement is valid from 4 October 2023 to 31 December 2023 and can be
renewed on mutual agreement from both parties.  During the contract, and
where possible, Critical Metals will provide the Buyer with copper ore with an
average minimum acid soluble copper grade of 1.5%.

As a general guidance for the ore sales price, using an LME copper price of
US$8000 and an acid soluble copper grade of 3%, the gross price received for
the sale of copper ore would be US$91.20 per tonne.

The Buyer has already taken delivery of the first load of copper ore last week
and has a fleet of ten trucks, each with the capacity to transport 40 tonnes
of ore.

Russell Fryer, CEO of Critical Metals commented:

"In the last few months, we have experienced significant interest from seven
different buyers of our product. We are delighted to announce our offtake
agreement with OM Metal & Resources, making Critical Metals the first
western and London Stock Exchange listed company to produce and sell copper
ore in the DRC since Glencore and Ivanhoe.  This momentous achievement will
provide us with short term cashflow and allows us to fast track our progress
at Molulu.

"We are sticking to our first phase production target of producing 10,000
tonnes of oxide ore per month and this partnership allows for the production
at Molulu to be monetised quickly. Furthermore, with the current diamond
drilling programmes that are underway at the Molulu oxide and sulphide zones,
our confidence in the large potential of Molulu continues to grow."

Analysis, pricing, and payment of copper oxide ore

Weighing, moisture determination, sampling, and analysis shall be carried out
after the delivery of five trucks of ore to OM Metal's factory.  Critical
Metals will send a designated representative to supervise this process to
ensure accuracy.

The sales price used will be based on the closing daily LME copper price on
the delivery date of the 5(th) truck. Once the invoice is sent to the Buyer,
the Buyer will make the payment of all the invoices received for current week,
in the following week, minus a transportation cost.

 

**ENDS**

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

 

 Critical Metals plc

 Russell Fryer, CEO                               Tel: +44 (0)20 7236 1177
 Peterhouse Capital Limited

 Corporate Broker

 Lucy William / Charles Goodfellow                Tel: +44 (0)20 7469 0936 / +44 (0)20 7220 9797

 St Brides Partners Ltd

 Financial PR

 Catherine Leftley /Ana Ribeiro/Isabelle Morris   Tel: +44 (0)20 7236 1177

 

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, a producing asset in the Katangan Copperbelt in the Democratic
Republic of Congo.

 

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

 

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