REG - Critical Mineral - Directorate Change and 2023 Accounts

Critical Mineral ResourcesAnnouncement

25/04/2024 07:15

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RNS Number : 0032M  Critical Mineral Resources PLC  25 April 2024

25 April 2024

 

 

Critical Mineral Resources PLC

('CMR' or the 'Company')

Directorate Change and Annual Report and Financial Statements for the Year
Ended 31 December 2023

 

Critical Mineral Resources PLC ('CMR' or the 'Company), the exploration and
development company focused on clean energy metals in Morocco, is pleased to
announce the appointment of Dominic Traynor as Non-Executive Chairman.  It
also announces its audited Report and Accounts for the year ended 31 December
2023.

Chairman Appointment

Dominic Traynor has been a Non-Executive Director of the Company for two
years. Over the last year he has worked closely with the management regarding
the evolution of the Company's strategy and its successful transition to an
exploration and development company focused on critical and clean energy
metals in Morocco. He has also been instrumental in enhancing the Company's
corporate governance policies and protocols.  As a partner at City law firm,
Druces LLP he brings with him extensive experience in the public markets and
corporate governance with specialism in natural resources. He was a founding
director of AIM-listed SigmaRoc plc and is currently a director of investment
firm Prism Group AG.

 

 

Annual Report and Accounts and General Meeting

The Report and Accounts are now available on the website at
https://cmrplc.com (https://cmrplc.com)  and a copy will also shortly be made
available on the FCA's National Storage Mechanism ('NSM') in electronic
format, as required under DTR obligations. The Company intends to hold a
General Meeting in the near future to approve the Report and Accounts. The
Chairman's report is provided below.

 

 

Chairman's Report

 

2023 was a year of important and successful transition for the Company, during
which it developed a clear strategy and made strong operational progress. With
the Company's clear focus on taking opportunities to develop commodities
urgently required for Western economies, and reflecting our progress, it was
only appropriate to change the Company name to Critical Mineral Resources PLC
("CMR"), on 17 August 2023. I am delighted to have recently taken the position
of Chairman following the year of progress and with so much opportunity ahead.

 

The sale of the Cyprus assets during the period marked a significant milestone
for the Company and enabled the leadership team to concentrate on its strategy
of evaluating and acquiring development opportunities in the critical metals
sector.

 

Mindful of the Company's human and financial resources, CMR undertook a
strategic review analysing appropriate jurisdictions where the Company could
fully focus. This included analysis of jurisdictions that offer substantial
resource opportunities, are not constrained by geopolitical sensitivities and
have developed downstream and customer markets nearby. As part of this
exercise, CMR also took the difficult decision not to pursue the opportunity
to develop its RIWAQ Al Mawarid for Mining ("RIWAQ") portfolio of exploration
licence applications in the Kingdom of Saudi Arabia due to the large size of
the portfolio, which our Board deemed unfeasible for CMR's current resources.

 

Following the completion of the strategic review in June, the Company
entered the Moroccan market via the 80% acquisition of a local Moroccan
exploration company, Atlantic Research Minerals ("ARM"), led by a highly
regarded Moroccan geologist with a deep understanding of the region. Morocco
is an excellent jurisdiction for upstream and longer-term midstream battery
materials projects. Critically, it has deposits of copper, manganese, cobalt
and other critical metals and minerals. However, the well-mineralised geology
is largely under-explored.  Morocco's main trading partner is the European
Union, and its modern infrastructure, proximity to Europe, and political
stability make it an excellent country in which CMR can operate. During 2023,
Morocco continued to gain significant recognition from global organisations as
a battery commodity and materials hub, as evidenced by several large-scale
investments from multinational organisations operating in the battery supply
chain.

 

In the second half of the year, CMR gained momentum in building an extensive
portfolio of projects proving the geological potential of the Moroccan regions
where the Company is prospecting and the strong know-how of its Moroccan
subsidiary ARM. After extensive exploration during the summer months, the
Company announced it had staked several research permits, from which it kept
the Ighrem Permit. The Ighrem permit is 16km(2) and contains high-grade
manganese and barite mineralisation. It is also prospective for copper and
silver. At the same time, CMR announced that it had entered into binding heads
of terms on the Anzar Project, a potentially exciting high-grade
copper-silver project in central Morocco. This earn-in approach allows CMR to
take majority equity stakes for modest investment sums, and only once CMR has
derived confidence from development studies.

 

The Company maintained its momentum and continued to build out its Moroccan
incubator portfolio, ensuring it has a healthy balance of commodities
supporting critical minerals demand and the clean energy transition. In this
regard, CMR increased its exposure to copper, a commodity vital for
electrification, with the announcement in December that the Company had been
granted four new exploration permits in the Rabat and Beni-Mellal regions.
The permitted area covers an area of approximately 80 km(2) in north Morocco,
80km south of Rabat, and is easily accessible by roads. Three new permits
comprise the Meseta Project, primarily prospective for copper, though in a
region also renowned for tungsten, tin and lead-zinc mineralisation.

 

Post Period

 

In January 2024, the Company announced that it had agreed to acquire 26
exploration permits in central Morocco prospective for copper, antimony,
tungsten, lead-zinc and gold. This acquisition will transform CMR's incubator
portfolio in terms of the Company's footprint of prospective ground
in Morocco and its exposure to a wide range of critical metals and minerals.
The permits that will be acquired through the issuance of 3.0m CMR shares are
located in the Rabat, Beni-Mellal, Agadir and Errachidia administrative
regions and cover approximately 400 km(2). In addition to transforming the
Company's footprint in Morocco, the transaction will firmly established CMR as
a key player in the Moroccan commodity development sector. Having only entered
the market six months earlier, this is an excellent achievement and testament
to the strength and experience of the Company's leadership.

 

In March 2024, the Company raised £0.25m before expenses through the sale of
new shares and treasury Shares. The announced net proceeds of the Placing will
enable the Company to advance the Ifri Project ('Ifri'), which the Company
will gain access to as part of the group of exploration permits to be acquired
as mentioned above. Ifri is in the Anti-Atlas and has delivered very positive
initial results. Prospecting by CMR's geological team demonstrates copper and
silver in multiple quartz vein and shear zone structures, with some zones
assaying for gold. The Ifri Project is located in an alteration hotspot, and
initial channel sampling included an assay of 3.1% copper and 17 g/t silver.

 

Outlook

 

In the last nine months, the Company has gained significant momentum in
Morocco, with an extensive portfolio that presents exciting opportunities with
multiple commodities critical for western economies and the energy transition.

 

In addition to rapid progress we have made with our existing Moroccan
portfolio, we are also utilising the board's extensive contacts to source
larger-scale projects with or without the support of potential strategic
investors. The Company has ambitions to grow its portfolio of critical
minerals assets and aims to become a producer in the medium term, sooner if
the right opportunity is sourced. As touched on below this could extend to the
wider renewables sector depending on project availability.

 

Given the operational traction CMR has achieved, it has built extensive
relationships within the mining sector at a domestic level. This includes
relationships with clean energy stakeholders evaluating Morocco as a
destination for renewable energy given its excellent solar and wind
characteristics. These relationships may present opportunities for the Company
to produce commodities using renewable energy sources, in effect producing low
carbon, sustainable critical metals.

 

This would be a natural extension of the Company's existing strategy and
provide significant appeal to end customer markets, who are increasingly
embedding strategies to address their scope two and scope three carbon
emissions.

 

I want to thank the entire CMR team, who, after the turmoil of 2022, have
worked tirelessly during the last year to reposition the business, establish a
clear strategy and make excellent progress in its execution. I am confident
CMR is now well-positioned to continue operational progress, achieve growth
and deliver value for all stakeholders.

 

 

Dominic Traynor

Chair

24 April 2024

 

 

 

 Critical Mineral Resources PLC           info@cmrplc.com (mailto:info@cmrplc.com)

 Charles Long, Chief Executive Officer
 Novum Securities                         +44 (0) 20 7399 9425

 Jon Belliss
 Hudson Sandler (Financial PR)            +44 (0) 207 796 4133

 Charlie Jack

 

Notes To Editors

Critical Mineral Resources (CMR) PLC is an exploration and development company
focused on developing assets to produce critical minerals and metals,
including those essential for renewable energy and electrification to support
the clean energy revolution. Many of these commodities are widely recognised
as being at the start of a supply and demand supercycle.

 

CMR is building a diversified portfolio of high-quality metals exploration and
development projects in Morocco, focusing on copper, nickel, manganese,
cobalt, and potentially rare earths. CMR identified Morocco as an ideal
mining-friendly jurisdiction that meets its acquisition and operational
criteria. The country is perfectly located to supply raw materials to Europe
and possesses excellent prospective geology, infrastructure and attractive
permitting, tax and royalty conditions. In 2023, the Company acquired an 80%
stake in leading Moroccan exploration and geological services company Atlantic
Research Minerals SARL.

 

Since taking over the CMR in 2022, the current management has completed a
comprehensive strategic review and restructuring of the business and
implemented its clear strategy to maximise exploration and resource
development opportunities for the benefit of all stakeholders. The Company is
listed on the London Stock Exchange (CMRS.L). More information regarding the
Company can be found at www.cmrplc.com (http://www.cmrplc.com)

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