REG - Critical Metals PLC - Molulu Copper/Cobalt Project Update

Critical MetalsAnnouncement

30/12/2022 07:00

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RNS Number : 2139L  Critical Metals PLC  30 December 2022

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

 

 

30 December 2022

Critical Metals plc

("Critical Metals" or the "Company")

 

Molulu Copper/Cobalt Project Update

2022 - A Transformational Year

 

Critical Metals plc, a mining company established to acquire mining
opportunities in the critical and strategic metals sector, and currently
developing the Molulu Project ("Molulu" or the "Project"), an ex-producing
copper and cobalt mine in the Democratic Republic of Congo ("DRC"), provides a
market update on the Project and the Company's milestones since its
readmission trading on the London Stock Exchange on 12 September 2022
("Readmission").

 

Ahead of Readmission, management raised GBP1,800,000 at 20 pence per share for
the re-start of the now indirectly owned 70% of the Molulu project, following
the recent acquisition of the remaining 43% of Madini Occidental Ltd.

 

Soon after Readmission, geological mapping of Molulu began with data entered
into geological mapping software. The software allows an electronic map to be
drawn with a resolution scale of 1/10,000, thereby allowing deeper
understanding of the known copper ore body, with the expectation of unknown
copper ore body extensions to be found. So far, one new copper ore extension
has been found in the southern part of the lease area using this software, and
three existing oxide copper targets have been identified close to surface with
average copper grades of 3%.

 

In addition, the Company focused on further understanding the existing copper
ore bodies, two cobalt areas of which one was previously artisanally mined,
potential drilling areas for input into the JORC report, and other
requirements for production, as the lease area is 17km(2) with less than 10%
of the property understood.

 

During the third week of September 2022, the Board of Directors flew to the
DRC to meet in person with our local partners that hold the remaining 30% of
the Project. The Board also visited Molulu to meet with our mine engineer and
geologists on the ground while visiting the copper outcrops.

 

In late September 2022, camp accommodation for thirty employees was ordered
from South Africa and after a customs clearance period, finally arrived at
Molulu in November.

In early November 2022, the Company strengthened its team on the ground with
the appointment of two seasoned mining veterans, a Project Manager and a Mine
Manager , each with over 30 years' experience. These professionals built the
Molulu camp to best industry practices, while overseeing the development of
the mining plan. Also in November, a heavy equipment rental contract was
signed to lease the necessary mining machinery to commence mining. The
decision to lease the equipment was made to keep the up-front capital costs to
a minimum while copper production ramped-up.

Unfortunately, due to consistent operational failures and unmet deadlines by
the mining equipment supplier, the Company has decided to change its equipment
supplier. A new supplier has been appointed and the replacement mining
equipment is expected to be on site by the end of next week.

 

The delay in the delivery of the equipment has had a knock-on effect on our
timetable with copper ore production now anticipated in January 2023.  The
Board of Critical Metals would like to reassure investors that this is a
short-term minor delay relating to supply chain challenges in the delivery of
equipment and does not change our twelve-month copper ore production or
earnings forecasts.

Finally, in December, the minority shareholders holding 43% of Madini
Occidental Ltd (MO) agreed to sell its shareholding in MO to Critical Metals
for GBP1,300,000. This capital was raised at 25 pence per share via five
investors, including Ian Hannam, now a 10.1% shareholder in the Company, and
Russell Fryer, the Company's CEO. This buyout of MO minorities by the Company
sees its indirect beneficial ownership in Molulu increase from 40% to 70%.
This transaction and streamlining of the corporate structure is highly value
accretive to shareholders, which will be evident once steady state production
levels are reached.

In conclusion, after an extremely lengthy and complex readmission process,
2022 has been a most positive and uniquely transformational year. The Company
is extremely thankful to its shareholders that believe in our vision of
creating a fully integrated, multi-jurisdictional critical metals production
company. The Company looks forward to updating shareholders and the market
again next month.

 

 

**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

 

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