REG - Critical Metals PLC - First Day of Dealings & Readmission

Critical MetalsAnnouncement

12/09/2022 07:01

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RNS Number : 9913Y  Critical Metals PLC  12 September 2022

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constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014.

 

 

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

 

12 September 2022

 

Critical Metals plc

("Critical Metals" or the "Company")

 

Admission to the Official List & First Day of Dealings

 

Critical Metals plc, a company established to acquire mining opportunities in
the critical and strategic metals sector, is pleased to announce the
readmission of its ordinary shares of £0.005 ("Ordinary Shares") to trading
on the Standard Segment of the Official List and to trading on the Main Market
of the London Stock Exchange (together "Admission") following the completion
of the acquisition of a 57 per cent. interest in Madini Occidental Limited
("Madini Occidental"), which holds an indirect 70 per cent. 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"). The Acquisition constituted a
reverse takeover under the FCA's Listing Rules.

 

In conjunction with the Acquisition, the Company has successfully raised
£1,800,000 through a Placing of 9,000,000 new Ordinary Shares at 20 pence per
share (the "Placing").

 

On Admission, the Company will have 52,659,735  Ordinary Shares in issue and
the market capitalisation of the Company will be approximately £10,531,947,
based on the price of the Placing.

 

Admission of the Company's Ordinary Shares to trading will take place and
dealings will recommence at 8:00 a.m. today under the ticker 'CRTM' and ISIN
GB00BJVR6M63.

 

 

Overview of the Molulu Project

 

·    Acquired a controlling stake of 57 per cent. in Madini Occidental,
which holds an indirect 70 per cent. interest in the Molulu Project for a
total consideration of US$750,000 less approximately US$129,000 and EUR
33,400, being costs of the target group paid by the Company prior to Admission

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

·    The DRC is the world's fourth largest producer copper producing 1.6
million metric tonnes in 2020 and supplies approximately 60 per cent. of the
world's cobalt

·    Critical Metals intends on bringing the Molulu Project into
production in Q4 2022, following  generating near-term free cashflow

·    Proximity to copper smelters in Lubumbashi and Likasi provide
processing and/or selling channels for copper and cobalt production

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

·    Copper price has increased from US$2.21/lb to $3.58/lb between August
2016 and August 2022, driven by global economic growth, increasing
infrastructure investment and global supply-side deficit

 

 

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

"We have reached a milestone with the readmission of the Company to trading
following the completion of our acquisition of our interest in the Molulu
Project. I believe the Molulu Project presents a fantastic opportunity to gain
near-term exposure to these critical minerals, the global need for which
remains clear.

 

"With mineralisation evident at the surface and at shallow depths and with
proximity to copper smelters, we expect to bring this ex-producing
copper/cobalt asset, in a highly prospective region, into production in Q4
2022, which is intended to generate the cash flow required to fund future
operations.

 

"I would like to take this opportunity to thank shareholders and prospective
shareholders for their patience due to certain time-consuming complexities.
This is a very exciting time for Critical Metals and I look forward to sharing
regular updates on our progress at the Molulu Project."

 

 

Placing Highlights

 

The Company has successfully raised £1,800,000 (before expenses) via a
placing of 9,000,000 new Ordinary Shares ("Placing Shares") at an issue price
of 20 pence per share. The net proceeds of the Placing, in conjunction with
the Company's existing cash resources, will be used primarily in connection
with the consideration for the Acquisition, with the balance used for
drilling, mine site upgrades and general working capital purposes.

 

In addition, the Company has agreed to issue, on Admission, one warrant for
every one Placing Share issued (the "Warrants"). The Warrants will vest on
Admission and will be exercisable for 12 months for a cash price of 40 pence
per Ordinary Share.

 

Strand Hanson Limited is acting as Financial Adviser and Peterhouse Capital
Limited is acting as broker in relation to Admission.

 

Total Voting Rights

The number of shares in issue immediately after Admission is  52,659,735,
giving the Company a market capitalisation of approximately £10.5 million at
the issue price of 20 pence per Ordinary Share.

 

For the purpose of the Disclosure and Transparency Rules, following Admission
the enlarged issued share capital of the Company will comprise 52,659,735
Ordinary Shares. The Company does not hold any shares in treasury. The above
figure may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in, the Company, under the Disclosure and
Transparency Rules.

 

 

**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/Heena Karani  Peterhouse Capital Limited, Corporate Broker  Tel: +44 (0)20 7469 0936

                                                                                          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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