REG - Critical Metals PLC - Operational Update & Strategic Financing

Critical MetalsAnnouncement

27/08/2024 09:45

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RNS Number : 8067B  Critical Metals PLC  27 August 2024

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

 

27  August 2024

Critical Metals plc

("Critical Metals" or the "Company")

 

Operational Update & Strategic Financing

 

Critical Metals plc, developer and operator of the Molulu Copper/Cobalt
Project ("Molulu" or the "Project") in the Democratic Republic of Congo
("DRC"), is pleased to provide an operational update, and details of a
strategic financing.

 

HIGHLIGHTS

Operational Update

 

·    28 kilometre road rehabilitation completed to support increased
traffic to the Project in all-weather conditions.

·    Commercial terms have been with O.M. Metals S.A.R.L. ("O.M. Metals")
for renewed off-take purchase agreement.

·    Chemical testing by O.M. Metals on the stockpiled ore returned acid
soluble grades of 3.56%, 1.97%, and 1.11% copper.

·    Three separate copper zones identified, including a possible ROAN,
hosted copper zone in the south, following detailed trenching, soil chemistry
analysis, and 3-D modelling.

·    Five-year licence renewal submitted to the Ministry of Mines on time.

·    Positive discussions ongoing for financial support from the United
States Export-Import Bank ("EXIM"), Development Finance Corporation ("DFC"),
and the United States Agency for International Development ("USAID").

 

Strategic Financing

 

The Company has entered into a term sheet for the injection of up to £2.5m
from NIU Invest SE ("NIU"), a German company that invested £1m in the
convertible loan note the Company issued in April 2024.  NIU has today
initially invested £105,000 via convertible loan notes issued by the Company
that are convertible at a price of 2p per ordinary share of 0.5p each in the
capital of the Company ("Ordinary Shares") upon the Company publishing an FCA
approved prospectus. In consideration for this, the Company has granted to NIU
warrants over 4.2m new Ordinary Shares exercisable at 0.5p per Ordinary Share.
The Company is in the process of finalising the terms of the NIU investment
and the Company will update the market when definitive legal agreements are
entered into.

 

Critical CEO Russell Fryer said, "The identification of three copper zones is
a fantastic achievement and we are very pleased that the refurbishment of the
road leading to the Molulu Project has been completed.  We are delighted to
have secured a bridge loan financing agreement with NIU and agreed a framework
for NIU to provide us with the strategic financing that would enable us to
push forward with our exploration work. We are grateful to NIU for their
support. We look forward to providing further updates on all activities in due
course."

 

DETAILS

Operational Update

The Company continues to make progress towards recommencing production at the
formerly producing Molulu Copper/Cobalt Project in the Katangan Copperbelt in
DRC.

 

Road Rehabilitation

The Company has completed the rehabilitation of a 28 kilometre public road
leading to the Project. This upgrade facilitates increased traffic on the road
and is expected to enable the road to be more resistant to the rainy season.
The Company believes this is a key step on the pathway to recommence
production at Molulu and resuming sales of stockpiled copper ore.  The
improved infrastructure will also benefit the surrounding community.

 

Off-take Update

O.M. Metals visited Molulu in June 2024 to resample the ore stockpiles. Three
samples were taken and chemically tested at a laboratory to determine the
acid-soluble copper in the ore, with the grades returned being 3.56%, 1.97%,
and 1.11% copper. The commercial terms for off-take purchase agreement have
been agreed and OM Metals is preparing trucks to travel to Molulu for ore
loading.

 

Geological and Exploration Programme

As previously mentioned, the Molulu team of geologists has identified
additional mineralised copper zones. Originally, the belief was the copper
zones were contained in one system. However detailed trenching, additional
soil chemistry analysis, and initial 3-D modelling have indicated three
distinct zones of copper, including the possibility of a ROAN hosted copper
zone in the south.

 

The copper zones are now identified as the Northern zone, the Central zone,
and the Southern zone. The Northern zone is the area where exploration mining
began in January 2023. The Central zone is the area where previous mechanised
mining occurred in the large pit before Molulu was acquired. The Southern zone
is the area where two artisanal pits were discovered but little exploration
work was done in the zone until recently.

 

The exploration programme, which consisted of digging 22 trenches in all three
zones, has been completed, with some surface copper soil readings of 0.36%
(3600 ppm) in the Central and Southern zones. In total, one-thousand sixty-six
(1066) soil samples were taken and analysed in the Southern zone that hosts
the Grand Conglomerate as shown in Figures 1 and 2. Visible malachite spots
were observed in some of the surface rock samples, with a NITON XRF reading of
1.3% copper.

Figure 1. Map depicting the completed exploration in Molulu without rock
types.

Figure 2. Map depicting the completed exploration in Molulu with rock types.

 

US Government Discussions

Discussions on qualifying for financial support from the United States
Export-Import Bank ("EXIM"), Development Finance Corporation ("DFC"), and the
United States Agency for International Development ("USAID"). Positive
discussions are ongoing, and the market will be updated on the progress when
appropriate.

 

Licence Renewal

Documents and studies were submitted to the Ministry of Mines in June 2024 for
an additional five-year licence PEPM renewal. The DRC Mining Cadastre website
confirms the Molulu Small-scale Mining Permit licence documents have been
received and the licence is in active renewal status. Further details on the
licence renewal will be released when appropriate.

 

 

**ENDS**

 

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

 

 Critical Metals plc

 CEO

 Russell Fryer                  critical@stbridespartners.co.uk

 Fox-Davies Capital Limited

 Corporate Broker

 Daniel Fox-Davies              Tel: +44 (0)20 3884 8450

 St Brides Partners Ltd

 Financial PR

 Ana Ribeiro / Charlotte Page   critical@stbridespartners.co.uk

 

 

About Critical Metals

London listed Critical Metals plc is focused on identifying low CAPEX and OPEX
brown-field projects with near-term production and cash-flow, concentrating on
minerals that have strategic importance to future global economic growth.  In
line with this, and with an off-take partner already in place, the Company is
currently focused on recommencing production at the formerly producing Molulu
Copper/Cobalt Project in the Katangan Copperbelt in Democratic Republic of
Congo ('DRC').

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