Critical Metals PLC (LSE:CRTM) said it has further increased its economic interest in the Molulu ex-producing copper-cobalt mine with the acquisition of the final 21.5% of Madini Occidental Ltd (MO) from Madini Minerals Ltd, taking the company's holding in MO to 100%.
Critical Metals is a mining company established to acquire mining opportunities in the critical and strategic metals sector and currently developing the ex-producing copper-cobalt mine in the Democratic Republic of Congo (DRC)
Further to its announcement of 15 December 2022, where the company had offered to purchase the balance of 21.5% in MO held by Madini Minerals Ltd, Critical Metals - which indirectly beneficially owns 55% of the Molulu Project has through its wholly owned subsidiary Critical Metals Mauritius Limited - said it entered into an agreement to acquire the remaining 21.5% in MO which indirectly owns 70% of the Molulu Project.
This increases the beneficial ownership and voting control of Critical Mauritius in MO from 78.5% to 100% and indirectly increases its ownership of the Molulu Project from 55% to 70%. The remaining 30% of the Molulu Project is held by the company's DRC-based partners.
The consideration for the share acquisition is £450,000 paid in cash on completion with a further payment of £200,000 on or before 1 October 2023, to be paid in Critical Metals shares at a price equal to the 10-day volume weighted average or cash, at the company's election.
The acquisition received the approval of the MO board on 19 December 2022.
Critical Metals said it will fund the cash element of the acquisition via existing cash resources, augmented by the proceeds of the fundraise it announced on 15 December 2022.
In a statement, Russell Fryer, CEO of Critical Metals, commented: "We are absolutely delighted that Madini Minerals accepted our offer to acquire the final 21.5% in Madini Occidental Ltd, resulting in a stream-lined and more efficient ownership structure while more importantly, providing our shareholders with a much larger interest in the high potential cash-generating Molulu Project.
"This strategically important transaction is the first step towards building a long-life, fully integrated copper cobalt production company. This new ownership structure will greatly increase shareholder value while the demand for both copper and cobalt continues to rise. I look forward to my next update in the near term where I anticipate being able to report on maiden production."