REG - Critical Metals PLC - Non-dilutive Finance Facility

Critical MetalsAnnouncement

18/09/2023 07:00

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RNS Number : 6808M  Critical Metals PLC  18 September 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

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

18 September 2023

Critical Metals plc

("Critical Metals" or the "Company")

Non-dilutive Finance Facility

Critical Metals, a mining company established to acquire mining opportunities
in the critical and strategic metals sector and currently developing an
ex-producing copper cobalt mine in the Democratic Republic of Congo ("DRC"),
announces it has signed a US$3 million non-dilutive debt facility with an
international financial institution (the "Facility").   The funds from the
Facility will help the Company to accelerate its mining operations, increase
production volumes whilst continuing negotiations with future buyers of copper
ore.

Finance Terms

The debt term is for 9 months from the date of execution of the agreement for
the first US$500,000 instalment, with a committed further tranche of
US$500,000 available at the Company's election following the satisfaction of
the funding conditions (being committed sales for the existing stockpiles).
The Company also has the ability to request further funds are available up to
the maximum utilisation of US$3 million.

The Company will pay interest only on the borrowed funds.

The key funding terms are:

-       15% fixed coupon for the term

-       The second tranche is available for 150 days after the first
tranche

-       Repayable at any time at the election of the Company

-       Personal guarantee from Russell Fryer by way of the pledge of
his ordinary shares in the Company (further detailed below)

-       Grant of 2,000,000 warrants over ordinary shares in the Company
(further detailed below)

-       Contains customary covenants and events of default for such
project related finance

The Board of Critical Metals is keen to emphasize that the Facility is not
convertible into ordinary shares in the Company.

As surety on the Facility, the Company's CEO, Russell Fryer, will provide a
personal guarantee for the Facility via an equity pledge of his current
shareholding in the Company representing two times the value of the capital
borrowed. Mr Fryer remains the beneficial owners of the ordinary shares,
subject to the equity pledge, and retain full voting rights.

Warrants

Upon execution of the Facility, the Company will also issue Warrants for the
international financial institution to subscribe for up to 2,000,000 ordinary
shares in the Company exercisable at 40p with an expiry of 12-months.

Use of Funds

The funds add to the balance sheet strength, allowing the company to
accelerate mining capacity, add an additional diamond drilling rig, complete
due diligence on copper and cobalt processing plants, and to expedite value
accretive deals that maximise full value out of the copper ore.

Critical Metals CEO, Russell Fryer, said: "We are at a pivotal stage of the
Company's development as we look to accelerate growth by optimising
operations, whilst looking at other opportunities to maximise shareholder
value. The splitting of the first tranche and the second tranche provides
capital optionality for the Company, and such flexibility is a huge positive
for the Company. As the largest shareholder I have made a personal commitment
to all shareholders to keep dilution down to a minimum and I have backed this
through the pledging of my shares to avoid dilutive equity placements. The
loan provides the Company with the necessary funds to accelerate growth. I
look forward to updating the market on our progress soon."

 

**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 / Duncan Vasey                      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 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.

 

 

 

 

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities and persons closely associated with them

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Russell Fryer

 2    Reason for the notification

 a)   Position/status                                              Director of Critical Metals PLC

 b)   Initial notification /Amendment                              Amendment

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         CRITICAL METALS PLC

 b)   LEI                                                          213800MU3B7CS88PY290

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary Shares

      Identification code                                          GB00BJVR6M63

 b)   Nature of the transaction                                    Transfer of shares into escrow subject to security

 c)   Price(s) and volume(s)

                                                                                     Price(s)          Volume(s)
                                                                                     N/A               2,336,347

 d)   Aggregated information

      - Aggregated volume                                          Single transaction

      - Price                                                      N/A

 e)   Date of the transaction                                      18 September 2023

 f)   Place of the transaction                                     London Stock Exchange

 

 

 

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