REG - Critical Metals PLC - Molulu Project Update & £600,000 Premium Placing

Critical MetalsAnnouncement

31/05/2023 07:00

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RNS Number : 0851B  Critical Metals PLC  31 May 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

 

31 May 2023

Critical Metals plc

("Critical Metals" or the "Company") 

 

Molulu Project Update

£600,000 Premium Placing

 

Critical Metals plc, a mining investment company established to acquire mining
opportunities in the critical and strategic metals sector, is pleased to
provide an update on recent progress at the Company's Molulu copper/cobalt
asset ("Molulu" or the "Molulu Project") in the Democratic Republic of Congo
("DRC").

 

In addition, Critical Metals is pleased to announce it has raised £600,000 at
25 pence per share, the proceeds of which will be used to assess acquisition
opportunities in line with the Company's stated goal to expand its asset base.

 

Highlights:

-               Two new anomalies identified by the geophysics
analysis on Molulu project

-               Road rehabilitation is complete and bridge
building has begun

-               High grade sulphide open pits begin draining

-               Drilling to begin in mid-June

-               Additional geologist hired for the creation of
the Molulu JORC report

-               Raised £600,000 at 25p per share, a 4.2% premium
to the share price closing price yesterday

-               Funds to advance M&A due diligence on
potential new acquisition opportunities

 

Molulu Project Groundwork Update

 

Further to the announcement of 15 May 2023, the Molulu Project has three areas
where mapping and geophysics analysis has been completed, with the Induced
Polarisation (IP) beginning this week. Figure 1 below shows the three areas,
labeled Phase 1, Phase 2, and Phase 3.

 

 

 

 

 

 

 

 

 

Figure 1

 

 

During the mapping and geophysics surveys, two new copper anomalies were
discovered directly south of the Phase 1 area. These new areas, known as Phase
1a and Phase 1b, will be included in the current IP programme. The Company
believes that this will further increase the tonnage to the already known
copper resource base.

 

The IP will move to the Phase 3 and Phase 2 locations respectively which will
allow geologists to identify the approximate depth and image of the subsurface
minerals, notably copper and cobalt. The drilling targets will then be based
on the results of the IP imaging which will be released when complete.

 

In addition, a drilling contractor has been appointed and recently visited
Molulu to begin preparation for mobilisation on site. Initial drill target
areas have been discussed and final decisions on the location of the first
drill pads will happen once the Phase 1 IP imagery is received, which is
expected in June 2023. Once the first drill results are received, the Company
believes there will be sufficient data to obtain a JORC Resource for the
project.

 

In early May 2023, the Company's management decided to use the hired dozer and
excavator that were already located at Molulu to rehabilitate the road that
connects the property to a number of ore buyers' processing plants.  This
decision saved shareholders over $50,000 in external contractor costs. The
dozer has now rehabilitated the entire road and now all that remains to allow
large tipper trucks to use the road to supply ore to the selected buyers is
the construction of a bridge that can accept the weight of 40-50 tonne tipper
trucks. Management has decided to use 40-50 tonne trucks instead of 25 tonne
trucks in order to move larger volumes of copper ore more efficiently, thereby
reducing the wear on both the bridge and road, while reducing variable unit
costs. The water-direction piping, steel re-enforcement, cement, and other
bridge building requirements are on site and the building of the bridge has
begun. The Company expects that the bridge will be complete in June 2023.

 

A water pump has been purchased and installed in the high-grade copper
sulphide open pit. Water decanting has begun, and the open pit is expected to
be empty in the middle of June 2023. This pit is the new focus of mining due
to the Company's belief that that the in-situ sulphide ore is higher-grade and
extends past 100 meters in depth.

 

It is anticipated drilling will begin in the second half of June 2023 once the
first results of the Phase 1 IP programme are received. Last month, the
Company hired an exploration geologist working on her PhD in geology to
capture and collate all the geotechnical, geophysics, IP, and borehole
drilling data for insertion into the creation of the maiden JORC report for
Molulu.

 

£600,000 Placing

 

As part of the Company's stated strategy to identify future assets that are in
line with its 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, the Company is pleased to have raised £600,000 (the
"Placing"), the proceeds of which will be used for geological due diligence on
potential acquisition opportunities, one of which has been identified outside
of the DRC. Consulting geologists have already visited this potential
opportunity and feedback is expected shortly.

 

The Placing has been completed at a premium price of 25 pence per Ordinary
Share, a 4.2% premium to the closing price on 30 May 2023. In addition,
warrants to subscribe for Ordinary Shares in the Company are being granted in
the ratio of one warrant for every 1 new Ordinary Share ("Warrants"). The
Warrants are exercisable at a price of 40 pence per Ordinary Share for 18
months from the date of issue.

 

Participants in the Placing include Ian Hannam, and five other long-term
supporters. Russell Fryer, a director of the Company, is also subscribing for
Ordinary Shares in the Placing at a price of 25p per Ordinary Share.

 

The Placing coincides with Molulu generating its first ore sales which are
expected late June, making the Molulu Project a self-sustaining operation.

 

Admission of Ordinary Shares

 

Application has been made for the admission to the Official List and the Main
Market of 2,400,000 Ordinary Shares in respect of the Placing, which are
expected to admit on 1 June 2023.  On Admission of the Ordinary Shares the
total number of Ordinary Shares in issue will be 62,312,235 with each Ordinary
Share carrying the right to one vote.

 

The figure which 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
Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency
Rules is, therefore, 62,312,235.

 

 

CEO of Critical Metals, Russell Fryer commented, "I am pleased to be able to
report on our continued progress at Molulu. With the road rehabilitation now
complete, and with the construction of the bridge underway, we look forward to
selling copper ore from Molulu in June.

 

"The discovery of two further anomalies is encouraging, with IP surveys
expected to take place. These survey results will be used to help plan the
upcoming drill programme. What is becoming apparent is the size of Molulu
deposit is increasing.

 

"Further, I am encouraged by the premium fundraise of £600,000. The Company
is continuing to assess further assets of interest in line with our
acquisition strategy, and we will provide an update to shareholders when
possible.

 

"As ever, I would like to thank our team at Molulu for their work getting us
to this point, as well as all shareholders for their continued support for the
management team. I look forward to providing an update to shareholders and the
market in the near future."

 

 

 

**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, 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 acquisition opportunities which
are 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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