LONDON, UK: Critical Metals plc is seeking to acquire a majority stake in Mauritius-incorporated Madini Occidental Ltd (MO), which will, on completion of the acquisition, have an indirect 70% beneficial interest in a ‘Small Scale Mining License’ (Permis d’Exploitation de Petit Mine) PEPM 14784, in the Democratic Republic of Congo.
Molulu is a copper/cobalt project located on the Katangan Copperbelt, adjacent to several medium and large-scale producers.
All workstreams continue to advance in relation to due diligence and application for readmission to trading on the Standard List, including the preparation of a Prospectus.
As previously announced, the Proposed Acquisition is expected to be made via an acquisition of ordinary shares in MO to the value of US$850,000.
In addition, two loans of US$150,000 and US$200,000 are expected to be made available to MO on terms to be agreed, with the former to be advanced to the current owner of the Project on terms to be agreed and the latter is to be used to fund an exploration drilling program to enable a JORC compliant resource to be created.
In order to advance certain facility and infrastructural improvements at Molulu, Critical Metals has agreed to advance US$140,000 of the Funding by way of a subscription for US$140,000 unsecured convertible notes in Madini Occidental Ltd pursuant to an unsecured convertible loan note issued by Madini Occidental Ltd for up to US$595,000.
The US$140,000 from the MO CLN will be used as working capital to commence remobilisation to mine site and to provide a pre-completion loan to the current owners in conjunction with and conditional upon MO’s subsidiary being granted a Mining License Lease Agreement over the Project.
Russell Fryer, CEO or Critical Metals, commented: “While we are making good progress towards completion of our first potential acquisition, we are eager for opportunistic infrastructural upgrade work to commence on site ready for us to hit the ground running upon completion. As mentioned previously, we believe that the historical mining on site will enable a low cost restarting of production, and these upgrades to roads, the campsite, and a better generator setup, amongst others, will help towards a swift production restart.
“We are seeing continued record demand, and therefore prices, for copper, with prices over $10,300/tonne as I write. The Board believes that the demand for copper, as a ‘critical metal’, will continue to increase, in part due to the increased environmental agenda globally for which electrification is a central theme. In addition, cobalt is highly sought-after by both the aerospace industry and the rechargeable power unit sector.”
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