REG - Critical Mineral - Placing to raise £0.25 million

Critical Mineral ResourcesAnnouncement

15/03/2024 07:00

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RNS Number : 9593G  Critical Mineral Resources PLC  15 March 2024

15 March 2024

Critical Mineral Resources PLC

('CMR' or the 'Company')

Placing to raise £0.25 million to develop high-priority Morrocan permit

Commodity trading opportunity

 

Critical Mineral Resources plc ('CMR' or the 'Company'), the exploration and
development company focused on critical minerals in Morocco, announces that
it has conditionally raised approximately £0.25 million (before expenses) by
way of a placing (the 'Placing') of 12,242,252 new ordinary shares in the
Company ('New Shares') and 8,018,646 ordinary shares held in the Company's
name ('Treasury Shares') at a price of 1.25 pence per new Ordinary
Share (the 'Placing Price').

 

Novum Securities ('Novum') is acting as the sole broker in connection with the
Placing.

 

Highlights

·    Placing to conditionally raise approximately £0.25 million through
the sale of New Shares and Treasury Shares at 1.25p per share.

·    Net proceeds of the Placing will enable the Company to advance the
Ifri Project  ('Ifri') in the Anti-Atlas which 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 Company is also in discussions with a leading global commodity
trading group that would like CMR to act as its Moroccan partner to source and
supply certain minerals for its global supply chain. Trading in metals and
potentially industrial minerals, either in a partnership or individually,
provides the Company with an opportunity for near-term cash flows.

·    Ifri Project located in an alteration hotspot and initial channel
sampling included an assay of 3.1% copper and 17 g/t silver.

·    The Ifri Project is in an active mining belt which hosts four active
and seven previously operating mines of copper, silver and gold.

 

Background to the Placing and use of proceeds

On 16 January 2024, the Company announced it had acquired 26 exploration
permits in central Morocco prospective for copper, antimony, tungsten,
lead-zinc and gold via the acquisition of Hesperis Resources SARL, a Moroccan
company. The acquisition transforms the Morrocan footprint of CMR's incubator
portfolio and its exposure to a wider range of critical metals and minerals.
It also cements CMR's position as one of the region's leading developers of
critical minerals.

Ifri Project mineralisation

CMR remains focused on developing Morrocan clean energy and critical minerals
projects that offer significant scale potential. Accordingly, and following
in-depth analysis, the Company has concluded the Ifri Project meets these
criteria. Initial prospecting at the Ifri site located multiple large copper
mineralised shear structures with copper oxide, copper sulphide, silver and
gold mineralisation.

Net proceeds from the Placing will enable a complete mapping and geochemical
survey of the project area. Ifri benefits from established local road and
power infrastructure.

Morocco operations

In the last 9 months, the Company has gained significant momentum in Morroco.
It now has a considerable geological understanding of the region's potential
as a global commodities hub. Furthermore, it has extensive relationships
within the mining sector at a domestic level. This regional Intellectual
Property and know-how has led to the Company receiving interest from a leading
global commodity trading group to become its Morrocan partner and supply it
with commodities from the region. CMR is now in discussions to formalise the
partnership.

PDMR Dealing & KM Securities Pty Ltd

KM Securities Pty Ltd ('KM Securities'), in which Russell Thomson, a
Non-Executive Director of the Company is a 50% shareholder, acquired 2,000,000
ordinary shares in the Company as part of this Placing.

Charlie Long, Chief Executive Officer of CMR PLC, commented:

"I would like to thank our existing shareholders for their support and welcome
new shareholders to the register. The net proceeds from the Fundraising will
accelerate the significant Morrocan opportunities CMR has successfully created
and advanced in recent months. As a specialist Morrocan exploration and
development company, we remain focused on developing projects and
opportunities that offer the prospect for meaningful production of critical
commodities and near-term cash generation. We are delighted with our recent
progress and are confident the fundraise will further enhance our Morrocan
momentum."

 

 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 that produce key commodities essential for
renewable energy, battery storage and electrification to support the clean
energy revolution. 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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