REG - Critical Mineral - Metals Trading Update

Critical Mineral ResourcesAnnouncement

20/11/2024 07:00

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RNS Number : 8708M  Critical Mineral Resources PLC  20 November 2024

Critical Mineral Resources PLC

('CMR' or the 'Company')

Metals Trading Update

Critical Mineral Resources PLC, the exploration and development company
focused on critical metals and minerals in Morocco is pleased to announce it
has commenced metals and industrial minerals trading. This will provide the
Company with a source of near-term cash flow and profits that will support the
core mission of acquiring and developing advanced mine development
opportunities in Morocco.

Trading venture background

Since the initial metals trading announcement in March, the Company has been
gathering momentum to establish a position in the Moroccan market.
Capitalising on the Board's experience and knowledge of Morocco's mining
industry, the Company has formed a partnership with a Moroccan trading
company.

Together we will source metal and mineral concentrates and raw ores from
Morocco's distinct mining regions and arrange delivery to the customer. These
will consist of buyers who take delivery in Morocco as well as shipments
overseas.

Joint venture agreement

The Company has entered into a joint venture agreement with the aforementioned
Moroccan company, which has access to sources of mined materials and
international customers. Our profit share agreement will be 70% to the Company
and 30% to our partner.

The joint venture's trading strategy will initially focus on low-risk and
short term trading opportunities, aggregating product from smaller producers
and upgrading lower grade products using our partner's operational
concentrating facility. Amongst other aspects, profit margins will depend on
the type of trading activity but will range from 3% up to 20% in some cases.
The trading arm of the Company is now operational and is expected to deliver
several trades over the coming weeks which will lead to trading updates later
this year and next.

Mine development opportunities

The Company has made excellent headway in its strategy to secure one or more
high quality development opportunities. Although it is not yet ready to
provide a detailed update, the Board would like to assure investors that
progress has been achieved and the Company expects to provide significant,
positive news during Q1 2025.

Charlie Long (CEO) commented: Although reaching this milestone has taken
longer than expected, we are extremely pleased to be adding a cash generating
business to the company which has the potential to grow into something
substantive. There are multiple examples of successful trading companies which
started in a similar manner.

The Moroccan mining industry presents a range of specific opportunities based
on its natural resources, and the resultant mining and minerals trading
activities. CMR has the enviable advantage of a COO who is embedded in this
sector, someone who has metals trading, mine management, permitting and
geological expertise. Our Moroccan operations, and equally our shareholders,
benefit from this experience and from the protection it brings.

Our new JV partner has a long history of trading in manganese, lead-zinc,
barite, speciality metals, oligiste and other industrial minerals. Our first
trade is likely to involve a speciality metal, although trades in zinc and
lead are also being considered.

Background

Morocco's mining industry includes phosphate (OCP Group), manganese, barite
(chemical and petroleum grades), lead-zinc, zinc-lead, copper-silver,
gold-silver (Aya Gold & Silver), oligiste, cobalt and gold. There is also
production of antimony, tungsten and industrial minerals such as feldspar,
fluorspar and gypsum. The map below shows the main mine regions and deep water
ports that handle the majority of Morocco's exported metals and minerals.

Fig 1: Morocco simplified mining regions

Source: Company

Related party

Noureddine Sabraoui, the Company's Chief Operating Officer, is a 50%
beneficial owner of the Moroccan trading company. As such, the joint venture
agreement is considered to be a Related Party Transaction. The directors of
CMR confirm that having exercised reasonable care, skill and diligence, that
the transaction is fair and reasonable insofar as the shareholders of Critical
Mineral Resources PLC are concerned.

CONTACT:

 Critical Mineral Resources PLC           info@cmrplc.com

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

 Jon Belliss

 

Notes To Editors

Critical Mineral Resources (CMR) PLC is an exploration and development company
focused on developing assets that produce key commodities for the global
economy including those essential for electrification and 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, manganese and potentially
other critical minerals and metals. 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, good 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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